1. Discuss the manner in which the transfer price was determined.
Was it a fair way to determine the cost of the transfer? What other methods would you consider? Who has a vested interest in the transfer pricing calculation? Does corporate care? Do the different divisions care?
2. Discuss the strategic implications of the French Division's expanding side business of deliveries. List at least two benefits of doing this and at least two negatives that could happen if this business were expanded.
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