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Assume a company has two divisions, Division A and Division B. Division A has provided the following information regarding the one product that it manufactures

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Assume a company has two divisions, Division A and Division B. Division A has provided the following information regarding the one product that it manufactures and sells on the outside market: Division B could use Division A's product as a component part in the manufacture of 4,000 units of its own newlydesigned product. Division B has recelved a quote of $54 from an outside supplier for a component part that is comparable to the one that Division A makes: Also assume that the company's divisional managers are evaluated based on their division's profits and that Division A Is currently selling 15,000 units on the outside market. If the managers of the two divisions do not agree on a transfer price and Division B purchases 4,000 component parts from an outside supplier, what would be the effect on the company's profits? Assume a company has two divisions, Division A and Division B. Division A has provided the following information regarding the one product that it manufactures and sells on the outside market: Division B could use Division A's product as a component part in the manufacture of 4,000 units of its own newlydesigned product. Division B has recelved a quote of $54 from an outside supplier for a component part that is comparable to the one that Division A makes: Also assume that the company's divisional managers are evaluated based on their division's profits and that Division A Is currently selling 15,000 units on the outside market. If the managers of the two divisions do not agree on a transfer price and Division B purchases 4,000 component parts from an outside supplier, what would be the effect on the company's profits

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