=+4 Suppose that the transfer price is set to the minimum calculated in requirement 3 plus $2,

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=+4 Suppose that the transfer price is set to the minimum calculated in requirement 3 plus $2, and the division managers at Clarity Ltd are free to make their own profit-maximising sourcing and selling decisions. Now, Vertual Ltd offers 20000 CD players for

$52 each.

Chapter 19: Management control systems, transfer pricing and multinational considerations 755 M19_HORN3377_02_LT_C19.indd 755 2/09/13 4:05 PM a What decisions will the managers of the Compact Disc Division and Assembly Division make?

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