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Assume a company has two divisions, Division B and Division C. Division B has provided the following information egarding the one product that it manufactures
Assume a company has two divisions, Division B and Division C. Division B has provided the following information egarding the one product that it manufactures and sells on the outside market: Division C could use Division B's product as a component part in the manufacture of 4,000 units of its own newlydesigned product. Division C has received a quote of $58 from an outside supplier for a component part that is comparable to the one that Division B makes. f the company's divisional managers are evaluated based on their division's profits and Division B is currently selling 15,000 units on the outside market, what is Division C's highest acceptable transfer price if it were to buy 4,000 units fro Division B
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