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Mr. Massee, the Vice President of Production is looking at two of the Divisions that report
to him. These divisions are viewed as profit centers by the company. He has called in the
head of Brake Division A, which provides a part used by Wheel Division, because he has
noticed that Wheel Division is going to an external supplier for the part. Mr. Omsby, the
head of the Brake Division, tells him that he has set the transfer price at $38 per part even
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