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Suppose that Division S has ample idle capacity to handle all of Division B's needs without any increase in fixed costs

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Suppose that Division S has ample idle capacity to handle all of Division B's needs without any increase in fixed costs or cutting into sales to outside customers. If Division S refuses to accept a transfer price of $28 or less and Division B continues to buy from the outside supplier, the company as a whole will

 

Paper#24995 | Written in 18-Jul-2015

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