Question: Stellar Systems Companys Microprocessor Division sells a computer module to the companys Guidance Assembly Division, which assembles completed guidance systems. The Microprocessor Division has no

Stellar Systems Company’s Microprocessor Division sells a computer module to the company’s Guidance Assembly Division, which assembles completed guidance systems. The Microprocessor Division has no excess capacity. The computer module costs $10,000 to manufacture, and it can be sold in the external market to companies in the computer industry for $13,500.

Required: Compute the transfer price for the computer module using the general transfer-pricing rule.

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