UNIT 8 $6,860 ($9,800 X .70) COST OF NEXT 7 UNITS = (8 X $6,860...

127. Correct answer c. Dual pricing promotes goal congruence, e.g., the selling division

receives full cost plus markup price which allows the division to earn a profit while the

buying division pays the market price and is no worse off than if purchasing from an

outside vendor. The organization as a whole is unaffected by the internal transfers.