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Market-based Transfer Prices Question 1. Assume that there are no alternative uses for internal facilities of division A. Determine whether the company as a whole
Market-based Transfer Prices Question 1. Assume that there are no alternative uses for internal facilities of division A. Determine whether the company as a whole will benefit if division C purchases the component from external suppliers for $ 145 per unit. How should the transfer price for the component be set so that division managers acting in their own divisions best interests take actions that are also in the best interest of the company as a whole?
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