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High Dive Inc. has several divisions, including the American Division, a producer of liquid pumps, and the Indian Division, a manufacturer of boat engines American
High Dive Inc. has several divisions, including the American Division, a producer of liquid pumps, and the Indian Division, a manufacturer of boat engines
American Division produces the hmodel pump that can be used by the Indian Division in the production of motors that regulate the raising and lowering of the boat engine's stern drive unit. The market price of the hmodel is $ and the full cost of the hmodel is $
Now suppose that High Dive allows negotiated transfer pricing, and that American Division can avoid $ of selling expenses by selling to Indian Division.
Which division sets the minimum transfer price, and the amount of minimum and maximum transfer prices are
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