CP 24-1 Ethics in Action Sembotix Compan uses semicond y has several divisions including a Semiconductor Division that luctors as a component in its final product and is evaluating whether to internal and external customers. The company's X-ray Ethics the Semiconductor Division or from an external supplier. The market Semic is $100 per 100 semiconductors. Dave Bryant is the controller of purchase them from Howard Hillman is the controller of the Semiconductor Division. the X-ray Division, and following conversation took place between Dave and Howard I hear you are having problems selling semiconductors out of your division. Maybe l can help. Dave: Howard: were selli all, we are part of the same company You've got that right. We're producing and selling at about 90% of our capacity to outsiders. Last year we na 100% of capacity. Would it be possible for your division to pick up some of our excess capacity? After Dave: What kind of price could you give me? Howard: Well, you know as well as I that we are under strict profnt responsibility in our divisions, so l would get market price, $100 for 100 semiconductors. Dave: I'm not so sure we can swing that. I was expecting a price break from a'sister" division. Howard: Hey, I can only take this "sister" stuff so far. If I give you a price break, our profits will fall from last year's levels. I don't think I could explain that. I'm sorry, but I must remain firm-market price. After all, it's only fair-thats what you would have to pay from an external supplier. Dave: Fair or not, I think we'll pass. Sorry we couldn't have helped. Is Dave behaving ethically by trying to force the Semiconductor Division into a price break? Comment on Howard's reactions