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Alma Inc. has a number of divisions, including the Beta Division, producer of circut boards, and the Gamma Division, heating and ar-conditioning manufacturer Beta Division
Alma Inc. has a number of divisions, including the Beta Division, producer of circut boards, and the Gamma Division, heating and ar-conditioning manufacturer Beta Division produces the TX-100 model that can be used by the Gamma Division in production of thermostats. The market price of TX-100 $16, and the full cost of a circuit board is $11. The Get Donald 54 of selling expenses by selling to the Gamma Division, which of the following statements is true to management allows negotiated transfer pricing between two do? a. The minimum transfer price would be set by the Beta Division at $16. b. The minimum transfer price would be set by the Beta Division at $12 c. The maximum transfer price would be set by the Gamma Division at $11. d. The maximum transfer price would be set by the company at $15
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