Question: =+PR 24-6B Transfer pricing obj. 5 3. Navigational Systems Division, $106,500 Special Activities Evigi Company has two divisions, the Semiconductor Division and the PC

=+PR 24-6B Transfer pricing obj. 5

✔ 3. Navigational Systems Division,

$106,500 Special Activities Evigi Company has two divisions, the Semiconductor Division and the PC Division. The PC Division may purchase semiconductors from the Semiconductor Division or from outside suppliers. The Semiconductor Division sells semiconductor products both internally and externally. The market price for semiconductors is $150 per 100 semiconductors.

Dan Robbin is the controller of the PC Division, and Jamie Palders is the controller of the Semiconductor Division. The following conversation took place between Dan and Jamie:

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