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( 2 Tata Group has many subsidiaries. The managers of two subsidiaries, ibrahim and Maria, come together to make a deal on the price of
Tata Group has many subsidiaries. The managers of two subsidiaries, ibrahim and Maria, come together to make a deal on the price of decorative lamps. Ibrahim can purchase the lamps from another company at $ Maria can sell the lamps at $ and the variable cost of the lamp is $ a If Maria's company has excess capacity, what might be the deal price? b If Maria's company doesn't have excess capacity, what might be the deal price? c If ibrahim wants to buy special lamps and wants some special additions to the lamp which cause $ increase in cost Maria needs to forgo the sales of regular lamps if she accepts this offer. What is the minimum transfer price for Maria?
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