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The company has a pump division that could use this valve in the manufacture of one of its pumps. The pump division is currently purchasing
The company has a pump division that could use this valve in the manufacture of one of its pumps. The pump division is currently purchasing 11,000 valves per year from an overseas supplier and it cost $15 per valve
assume that the valve division has ample idle capacity to handle all of the pumps division's needs. What is the acceptable range. If any for the transfer price between the two divisions?
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