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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 Divisio
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? Predict the transfer price of the component division, Also, calculate minimum transfer and maximum transfer. (ii)What should the minimum transfer price for this part be? (iii) What should the maximum transfer price be?