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Hello, I don't understand the answer of question 3 of this document: Is the negotiation of a price between the Midland and Amarillo Divisions an

Hello,

I don't understand the answer of question 3 of this document: Is the negotiation of a price between the Midland and Amarillo Divisions an appropriate method to determine a transfer price?

Can you explain why this is an appropriate method (not only because its a most used method) and why the negotiation will be successful?

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