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Division managers at Colonial Company are paid a bonus based on the residual income of their respective responsibility centers. Division A sells goods to Division

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Division managers at Colonial Company are paid a bonus based on the residual income of their respective responsibility centers. Division A sells goods to Division B and to outside customers. The manager of Division B would most likely prefer that transfer prices be based on: The market value of the goods purchased from Division A. The market value of the goods purchased from Division A plus a fixed percentage. The cost of the goods purchased from Division A. The cost of the goods purchased from Division A plus a fixed percentage

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