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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? It depends on the negotiation skills of the division managers. At the maximum price that is acceptable to Division B. At the lowest price that is acceptable to Division A. No transfer will occur

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