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Division a of a Firm Produces a Single Product, Which

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Division A of a firm produces a single product, which is sold only to Division B. Division A has a total investment of $1,000,000, while Division B has a total investment of $2,000,000. Division A annually sells 100,000 units of its product to Division B for $5 per unit and earns $150,000 in operating income. Division B currently earns $250,000. If Division A raises its selling price to $6 per unit and nothing else changes:


Definitions:

Mediators

Neutral third parties who facilitate negotiations and conflict resolution between disputing parties aiming for agreement.

Competencies

Skills and abilities that enable an individual to perform tasks successfully.

Diagnose Conflict

The process of identifying the source, nature, and scope of a disagreement or dispute.

Distributive Negotiations

A negotiation method that involves dividing a fixed amount of resources or assets, where any gain by one party is made at the expense of another.

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