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Exhibit 1-2 In Exhibit 1-2, at x = 12, the
Transfer Price
The charge for products and services transferred between branches of the same company.
Idle Capacity
The portion of a company's production capacity that remains unutilized or is not in active production due to lack of demand, maintenance, or other reasons.
Transfer Price
The price charged for goods or services transferred between departments, divisions, or subsidiaries of the same company, often used for accounting and tax purposes.
Valve Division
A specialized department or segment within a company focused on the production and sale of valves.
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