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Weasley Inc. has two divisions, Ginny and Percy. Ginny sells a specialized circuit to Percy and just recently raised the circuit's transfer price. This price
Weasley Inc. has two divisions, Ginny and Percy. Ginny sells a specialized circuit to Percy and just recently raised the circuit's transfer price. This price hike had no effect on either the volume of circuits transferred or on Percy's decision of whether to acquire the circuit from either Ginny or from an external supplier. On the basis of this information, which of the following correctly shows the effect of the transfer price on divisional profit and overall company profit? Ginny profit will not change, and Weasley (company) profit will decrease. Ginny profit will not change, and Weasley (company) profit will not change. O Ginny profit will increase, and Weasley (company) profit will increase. Ginny profit will increase, and Weasley (company) profit will decrease. O Ginny profit will increase, and Weasley (company) profit will not change
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