Lopez Inc. can either sell Part A in the open market or to another division within the company that uses Part A in manufacturing computers. The external market price of the product is $80.What decision should Lopez Inc. make about internal transfer pricing?a. It should set the internal transfer price at $60 and not sell to the open market.
b. The purchasing division should be forced to buy all of Product A produced by the producing division at $80.
c. It should set the internal transfer price at $80.
d. It should set the internal transfer price at $50 and not sell to the open market.
e. It should sell all of its product in the open market at $80 and not transfer any of its production internally.