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Nevada, Inc

question 44

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Nevada, Inc. has two divisions, one located in Las Vegas and the other located in Reno. Las Vegas sells selected goods to Reno for use in various end-products. Assume that the transfer between the two divisions takes place regardless of the transfer price set by Las Vegas. Which of the following correctly describes the impact of the transfer prices on divisional profits and overall company profit? Nevada, Inc. has two divisions, one located in Las Vegas and the other located in Reno. Las Vegas sells selected goods to Reno for use in various end-products. Assume that the transfer between the two divisions takes place regardless of the transfer price set by Las Vegas. Which of the following correctly describes the impact of the transfer prices on divisional profits and overall company profit?   A)  Choice A B)  Choice B C)  Choice C D)  Choice D E)  Choice E


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