Consider a company that leases a fleet of aircraft for passenger service. Because the planes often fly

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Consider a company that leases a fleet of aircraft for passenger service. Because the planes often fly with room in the cargo area, the company adds a new business shipping timesensitive freight. The company organizes into two profit centers—Passenger Service and Freight Service—and evaluates the division managers based on divisional return on investment. What transfer pricing issues might arise?

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