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QUESTION
Compute the contribution margin for Parts Division, Machines Division, and Global Tronics, Inc. associated with the sale of Part Z35 and Model SC20. Show ALL workings. 2. Suppose that Sasha Lebron abo
Compute the contribution margin for Parts Division, Machines Division, and Global Tronics, Inc. associated with the sale of Part Z35 and Model SC20. Show ALL workings. 2. Suppose that Sasha Lebron abolishes the current transfer pricing policy and gives division autonomy in setting transfer prices. (i) Can you predict what transfer price the manager of the Parts Division will set? (ii)What should the minimum transfer price for this part be? (iii) What should the maximum transfer price be?
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