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Assume a company has two divisions. Devision A and Divbion B Divislon A has piovided the following infoimation regarding the one product thst if imanuloctures

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Assume a company has two divisions. Devision A and Divbion B Divislon A has piovided the following infoimation regarding the one product thst if imanuloctures and seis an tho outside motket. Divion B could use Divsion As product as a componenit part in the manufacture of 4.000 unts of its own newi)desiqued product Division 0 has recelved a quote of 558 from on outuibe supplier for a component port that is comporable to the one that Division A maken: loweu accegtable transfer price if it were to sell 4.000 units to Divison Be? on the cutede macket. Divion A could use Divipan Ais product as a compenent part in the manufscture of 4,000 untr of its awn newly desighed product: Divivion th has tecelved a quote of 558 tiom an outside suoptier tor a componerl part that is comparatile to the one that bivion A makes howeit acceptable transfer price if ti were to selt 4000 units to Divinion eb

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