Division a wants to buy all 25,000 units from division B at $75 per unit....
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Division a wants to buy all 25,000 units from division B at $75 per unit. Should division B accept or reject the proposal? How would your answer differ if (a) Division a requires all 25,000 units in the order to be shipped by the same supplier, or (b) Division A would accept partial shipment from division B? What is the range of transfer prices over which the divisional manager might negotiate a final transfer price? Provide a rational for the range you provide. Division a wants to buy all 25,000 units from division B at $75 per unit. Should division B accept or reject the proposal? How would your answer differ if (a) Division a requires all 25,000 units in the order to be shipped by the same supplier, or (b) Division A would accept partial shipment from division B? What is the range of transfer prices over which the divisional manager might negotiate a final transfer price? Provide a rational for the range you provide
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