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(a) What is transfer pricing? (b)Suppose anassembly plant in company A assembles automobiles and it buys engines from another division of company A. In order

(a) What is transfer pricing?

(b)Suppose anassembly plant in company A assembles automobiles and it buys engines from another division of company A. In order for the company to determine its profit maximizing price for the assembled automobiles, what price must it pay the other division for engines?

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