Ultimate Watercraft Ltd. provides small watercraft to the Canadian market. It has three divisions that produce the small boats: the leisure division, the amateur sport division, and the expert whitewater products division. Each division produces the body of the boat and buys accessories from outside suppliers. Recently, the amateur sport division of Ultimate Watercraft acquired a manufacturer of plastic seats that are common to all of the boats sold by all divisions. Company policy permits each manager to decide whether to buy or sell internally. Each divisional manager is evaluated on the basis of ROI and EVA. The leisure division had bought its plastic seats from a vendor in Mexico. The average price paid was $55 per seat. However, the acquisition of the seat manufacturer made Fred Floatsum, manager of the leisure division, wonder whether a more favourable price could be arranged. He decided to approach Patricia Paddle, manager of the amateur sport division, to see if she wanted to offer a better price for an internal transfer. He suggested a transfer of 12,000 seats at $45 per seat to his leisure division