Analyze transfer pricing methods and their impact on divisional performance.

Division	Costs ($)	External Market Price ($)	Transfer Price Method
Division A (Seller)	Variable: $150,000, Fixed: $80,000	-	Cost plus 25%
Division B (Buyer)	-	$300 per unit	-

Requirements:

Calculate the transfer price using the cost plus method.

Analyze how the transfer price affects the profitability of Division A and Division B.

Discuss alternative transfer pricing methods (e.g., market-based, negotiated) and their implications.