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3. How does the transfer price (i.e., royalty payments) influence an evaluation of the performance (i.e.,...

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3. How does the transfer price (i.e., royalty payments) influence an evaluation of the performance (i.e., profitability) of Digital Creations? What could (or should) VGE do with Digital Creations if TrueWar III proves unprofitable? What other issues should Jerry Brown consider with regard to the structure of the royalty payments from VGE to Digital Creations? 3. How does the transfer price (i.e., royalty payments) influence an evaluation of the performance (i.e., profitability) of Digital Creations? What could (or should) VGE do with Digital Creations if TrueWar III proves unprofitable? What other issues should Jerry Brown consider with regard to the structure of the royalty payments from VGE to Digital Creations?

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The transfer price which refers to the royalty payments from VGE to Digital Creations can have a significant influence on the evaluation of Digital Cr... View the full answer


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