The Transfer Pricing Advisor

Recommend a transfer pricing approach between these internal units.

The units: [SELLING DIVISION AND BUYING DIVISION, WHAT'S TRANSFERRED]
Selling division's situation: [SPARE CAPACITY OR SELLING OUTSIDE AT
FULL CAPACITY]
External market price if any: [AMOUNT]
Costs: [VARIABLE COST, RELEVANT FIXED COST]

Advise on:
1. The transfer price range that keeps both divisions and the company
   whole
2. The right method here (market-based, cost-based, or negotiated) and
   why
3. How capacity changes the answer
4. The behavioural risk — divisions optimising locally against the
   company
5. A recommendation, plus any tax/jurisdiction caveat to check with a
   specialist

Keep the goal clear: decisions that are right for the whole company, not
just one division.