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Division A produces a product that it sells to the outside market. It has compiled the following: Division B of the same company is currently

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Division A produces a product that it sells to the outside market. It has compiled the following: Division B of the same company is currently buying an identical product from an outside provider for $38 per unit. It wishes to purchase 5,000 units per year from Division A. Division A is currently selling 25,000 units of the product per year. If the internal transfer is made, Division A will not incur any selling costs. At what price would the internal transfer occur? at the maximum price that is acceptable to Division B at the lowest price that is acceptable to Division A No transfer will occu It depends on the negotiation skills of the division managers

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