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LU2 - Western Life case study (Part 2)

Based on the Western Life case, answer the following questions in one page max.:

1. What is the transfer price used between the purchasing department and the chains?

2. What is expected from the purchasing department?

3. What is your evaluation of the congruency of the transfer pricing systems and this expectation? i.e. do you believe that the transfer pricing will ensure the purchasing department to go in the direction of the strategy? Why?

4. Which suggestions would you offer to improve this transfer pricing system?