@Your answer is incorrect. Try again. What would be a legitimate reason for upper management to insist on an internal transfer even though the product could be sourced outside the company at a price that is lower than the company's variable cost? O O o Management is concerned that its manufacturing equipment will soon be obsolete, and it wants to get full use out of it before it happens. Management wants to ensure a secure supply of the product. The company has excess capacity. There is never a legitimate reason that justifies an internal transfer if a product can be sourced outside the company at a price that is lower than the company's variable cost.