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Bramble Corporation has been purchasing the fabric needed to make upholstered chairs. Due to difficulty in securing this fabric, however, company executives decided to vertically
Bramble Corporation has been purchasing the fabric needed to make upholstered chairs. Due to
difficulty in securing this fabric, however, company executives decided to vertically integrate by
buying a fabric manufacturing business instead. The fabric manufacturer is operating at capacity and
able to sell everything it produces externally for $yard Bramble's chair division would like to
purchase the fabric for no more than $ yard, the amount its previous supplier charged.
Which price, if either, will they likely agree onRound answer to decimal places, eg
Transfer price $ per yard
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