Fuel GmbH, the new Lufthansa AG subsidiary, is organizing the company’s fuel warehousing. Fuel GmbH is subdivided into two profit centers: Profit Center A is located in Baku/Aserbadschan, and sells kerosine to the Profit Center B located in Bremen. Kerosine of the same quality is traded on the Rotterdam exchange. Current quote is at 68.33€ per barrel. 

(1) Give a sketch of the in-house transfer! 

(2) Which method of transfer pricing has to be used? Give detailed reasons for your answer and explain the proceedings when applying the method!