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Consider a company that leases a fleet of aircraft for passenger service. Because the planes often fly with room in the cargo area, the company

Consider a company that leases a fleet of aircraft for passenger service. Because the planes often fly with room in the cargo area, the company adds a new business shipping time-sensitive freight. The company organizes into two profit centers - Passenger Service and Freight Service - And evaluates the division managers based on divisional return on investment. What transfer pricing issues might arise?

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