In a time of distress prices, which of the following is TRUE? Question 27 options: In the short-term, the transfer price should be the distress price as long as this exceeds the incremental costs. The distress price should be ignored as it is a function of the market, not of the internal capacities of the overall company. The purchasing division should pay normal prices. The vendor division should set the transfer price at the distress price on a long-term basis for stability within the overall company. The vendor division should cease production.