Division M’s external sales generate $80 per unit 1
Divison S’s external purchases cost $60 per unit 1
Comparison of the $60 & $80 1
Reasoned conclusion that Div M should make 30,000 external sales 2
Division S should buy 5,000 units from outside 1
Co policy should be changed 1
Minimum TP from Division M’s perspective 1
Maximum TP from Division S’s perspective 1
Range of TPs discussed 2
Irrelevant to group which TP charged 1