Evaluate transfer pricing methods and their impact on divisional performance.

Division	Costs ($)	External Market Price ($)	Transfer Price Method
Division A (Seller)	Variable: $80,000, Fixed: $50,000	-	Cost plus 20%
Division B (Buyer)	-	$200 per unit	-

Requirements:

Calculate the transfer price using the cost plus method.

Analyze how the transfer price affects the profitability of Division A and Division B.

Discuss alternative transfer pricing methods and their implications.