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What are the pros and cons of div a choosing

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Reference no: EM132418598

Problem: Div A and Div B are two departments in the Wik company. Div A can their walls painted by an external firm for $20,000 or get it done by Div B for $27,000. (Note - Div B has underutilized capacity, and the manager has put in some time already in terms of choosing colors and drawing sketches with the manager of Div A)

Required:

Question 1: What is market price?

Question 2: What is the transfer price?

Question 3: What are the pros and cons of Div A choosing the external firm or Div B services.

Reference no: EM132418598

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