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Unformatted text preview: will both have improved profits. 4. The problem is that each divisional manager is more concerned with the profitability of their division than of the whole company. The two managers should sit down and should be able to agree on a transfer price that can benefit both of them. The president should facilitate a meeting between the two managers but should not force any agreement because he does not know the departments as well as the managers do....
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This note was uploaded on 11/16/2009 for the course ACCT 152 taught by Professor Bayak during the Spring '07 term at Lehigh University .
- Spring '07
- Managerial Accounting