Transfer Pricing: Performance Evaluation IssuesThe switch should be provided to the North Division as there appears to be excess capacity in the South Division . This is due to the lower cost of switching when it comes to the Northern Division. External demand for change appears to be limited and for this reason, the Southern Division should seize the opportunity and maximize the available opportunities (Abdallah, 2004, p. 109). The cost of production was taken into account in the price of the change and despite the falling profit margin; the southern division will not suffer any losses. The kitchen being built will not only benefit the northern division, but the entire company. Cochise Corporation will benefit from the transactions if the northern division receives the switch. The objectives of the entire company will thus be achieved and that is why the southern division should not hesitate to sell the switch to the northern division. This will benefit in terms of sales and profits, and will also help the company achieve its goals....