A large computer hardware manufacturing company in China is installing a responsibility accounting system. The company sells computers as per customer specification on some standardized parameters and has identified three profit centers: parts and service, new computers, and refurbished computers. The division managers have full autonomy in making decisions to sell outside. However, there are some interdepartmental dealings as well. For example, 

a. The parts and service department prepares new computers as per customer specification and refurbishes used computers prior to their resale. 

b. The refurbished computer division’s major source of inventory has been the computers exchanged against the new computers.

The CEO of the company requires Chen, the newly appointed manager of the company, to draft a company policy on transfer price with specific rules considering the above interdepartmental dealings. What can be the best policy on transfer pricing in this situation?