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Apple sets transfer prices between its divisions: Manufacturing division cost $50/unit, Retail division external market price $70/unit. Requirements: Calculate the impact of transfer pricing on

Apple sets transfer prices between its divisions: Manufacturing division cost $50/unit, Retail division external market price $70/unit.
- Requirements:
  - Calculate the impact of transfer pricing on divisional profits.
  - Analyze the tax implications of transfer pricing policies.
  - Recommend a transfer pricing strategy that aligns with tax regulations and divisional profitability goals.
  - Discuss the ethical considerations in setting transfer prices.

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