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Determine what transfer price would recommend

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Reference no: EM132746571

Problem 1: If Letgo Division desires to achieve it's operating income goal of 20% of sales. What should be the transfer price?

Problem 2: Assume that Letgo Division wants to maximize its operating income. What transfer price would you recommend that the Letgo Division negotiated?

Problem 3: What is the transfer price that you believe Letgo Division should charge if overall company-operating income is to be maximized?

Reference no: EM132746571

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