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wrong = 5 down votes M09 XYZ Lid. has two divisions, A and B Division A makes and sells product A, which can be sold
wrong = 5 down votes
M09 XYZ Lid. has two divisions, A and B Division A makes and sells product A, which can be sold outside as well as be used by B. an average, about 10% of the units that A produces are defectives 5. Conclusion: The optimum decision from Company's vies anandter Price should be fixed (within the range 60 to 80), so as to provide a and to operate at the optimum level for the company as a whole. XYZ Best Strategy for Departments and Overall Company - Transfer Prices for Optimal Decision an defective. It may be assumed that out of each lot that A supplies, 10% the customers in the outside market, the detectives are not returned, since the transportation costs make it uneconomical for delect nine buys product A, it has to fix it into its product, which is reputed for its quality. Therefore, 8 returns all the at insistnit B can buy product A from outside at 2.206 per unit, but has to incurStep by Step Solution
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