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3. How does the transfer price (i.e., royalty payments) influence an evaluation of the performance (i.e., profitability) of Digital Creations? What could (or should)

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3. How does the transfer price (i.e., royalty payments) influence an evaluation of the performance (i.e., profitability) of Digital Creations? What could (or should) VGE do with Digital Creations if TrueWar III proves unprofitable? What other issues should Jerry Brown consider with regard to the structure of the royalty payments from VGE to Digital Creations?

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