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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.. There is limited demand externally from A, and A has unlimited production capacity. A) Determine a sensible range for the transfer price to achieve goal congruence. As above, but there is now unlimited external demand from the external market for the intermediate product that Division A makes A, but Division A has limited production capacity. B) Determine a sensible range for the transfer price to achieve goal congruence

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