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Assume that Division A has a product that can be sold either to Division B of the same company or to outside customers. The managers

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Assume that Division A has a product that can be sold either to Division B of the same company or to outside customers. The managers of both divisions are evaluated based on their own division's return on investment (ROI). The managers are free to decide if they will participate in any internal transfers. All transfer prices are negotiated. Assume that Division A can avoid $6 per unit in variable costs on any sales to Division B. Which one of the following statements is most correct regarding the division managers' response to the opportunity for the jiternal transfer? the managers will agree to a transfer at a price between $35 and $38 the managers will not agree to a transfer the managers will agree to a transfer at a price between $38 and $410 the managers will agree to a transfer at a price between $19 and $38 the managers will agree to a transfer at a price between $36 and $39

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