=+2 Suppose Sampson Ltd rewards each division manager with a bonus, calculated as 1% of division operating
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=+2 Suppose Sampson Ltd rewards each division manager with a bonus, calculated as 1% of division operating profit (if positive).
What is the amount of bonus that will be paid to each division manager under the transfer-pricing methods in requirement 1?
Which transfer-pricing method will each division manager prefer to use?
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Related Book For 
Cost Accounting A Managerial Emphasis
ISBN: 9781442563377
2nd Edition
Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan
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