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Your local fast - food chain with two dozen stores uses the company s internal corporate marketing department to produce signage, print ads, in -

Your local fast-food chain with two dozen stores uses the companys internal corporate marketing department to produce signage, print ads, in-store displays, and so forth. When placing an order, store managers are assessed a chargeback (transfer price) that reduces store profitability but increases marketing department profitability. Lately, the store managers have been ordering more and more marketing services; the marketing department is swamped, and it cannot afford to hire more staff. What does this indicate about the chargeback rates?

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