Favoring Internal Buyers: Market-Based Transfer Pricing Aruna is the CEO of the X Corp., which comprises two divisions, the UP Division, managed by Susan, and the DOWN Division, managed by Peter. The UP Division makes an intermediate product and sells it to the DOWN division and to an external client, the Ladytron Corp. The DOWN Division assembles each unit of the intermediate product into one unit of a final product, which it sells to external customers. The UP Division incurs annual fixed manufacturing costs of $200,000 and variable costs of $4 per unit. The DOWN Division incurs annual fixed manufacturing costs of $100,000 and variable costs of $3 to convert one intermediate product into one final product and shipping the latter. (We can ignore SG