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A firm uses a negotiated transfer pricing system, and has two divisions, S (the selling division) and B (the buying division). The regular customers of
A firm uses a negotiated transfer pricing system, and has two divisions, S (the selling division) and B (the buying division). The regular customers of the selling division need 24,000 units. The buying division needs 10,000 units from the selling division. How many regular customers would the selling division have to turn away if the internal transfer occurs and the selling division only has enough capacity to produce 30,000 units? 0 4,000 O 6,000 O 20,000 0 Which of the following statements is true? O Assuming all else holds constant, if the average inventories increase, then the turnover will decrease. O Assuming all else holds constant, if the average inventories increase, then the margin will decrease. O Assuming all else holds constant, if the average inventories increase, then the turnover will increase. O Assuming all else holds constant, if the average inventories increase, then the margin will increase
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