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Moravian College Operations And Supply Chain Management Assignment Help - Lansing Electronics

Question - Lansing Electronics Inc. manufactures a variety of printers, scanners, and fax machines in its two
divisions: the PSF Division and the Components Division. The Components Division produces
electronic components that can be used by the PSF Division. All the components this division
produces can be sold to outside customers; however, from the beginning, nearly 90 percent of its
output has been used internally. The current policy requires that all internal transfers of components
be transferred at full cost. Recently, Cam DeVonn, the chief executive officer of Lansing Electronics,
decided to investigate the transfer pricing policy. He was concerned that the current method of pricing
internal transfers might force decisions by divisional ...Read More

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