=+3 Assume that there are no alternative uses for Division As internal facilities and that the price

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=+3 Assume that there are no alternative uses for Division A’s internal facilities and that the price from outsiders drops $20. Should Division C purchase from external suppliers? What should the transfer price for the component be set at so that division managers acting in their own division’s best interests take actions that are in the best interests of the company as a whole?

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