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Division A has costs of $15 p.u., and transfers goods to Division B which has additional costs of $10 p.u.. Division B sells externally at
Division A has costs of $15 p.u., and transfers goods to Division B which has additional costs of $10 p.u.. Division B sells externally at $35 p.u. . A can sell part-finished units externally for $20 p.u.. 1. Determine a sensible range for the transfer price in order to achieve goal congruence. 2. There is limited demand externally from A, and A has unlimited production capacity. 3. There is unlimited external demand fom A, and A has limited production capacity
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