=+Lynn: You’ve got that right. Were producing and selling at about 80% of our capacity to outsid¬

ers. Last year we were selling 100% of capacity. Would it be possible for your division to pick up some of our excess capacity? After all, we are part ofthe same company.

Michael: What kind ofprice could you give me?

Lynn: Well, you know as well as I that we are under strict profit responsibility in our divisions, so I would expect to get market price, $250 for 100 semiconductors.

Michael: I’m not so sure we can swing that. I was expecting a price break from a “sister” division.

Lynn. Hey, I can only take this sister stuffso far. IfI give you a price break, our profits will fall from last year’s levels. I don’t think I could explain that. I’m sorry, but I must remain firm market price. After all, its only fair—thats what you would have to pay from an external supplier.