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Week 5 Case 3: Greetings Inc.: Transfer Pricing Issues
- Exam (elaborations) • 8 pages • 2022
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1. Answer: 
I think the critical challenges for Mr. Burns is to find a good solution to setting the proper 
transfer price so that Wall Decor can generate the highest rate of return possible, and the transfer 
price to each store can be reasonable according to each store’s external market conditions. That 
is, Mr. Burns must bring change to the company’s transfer prices and keep both the business 
units, Greeting stores and Wall Decor, focused on the success of the overall company. 
On the o...
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