Thurmond, Inc A) Choice a
B) Choice B
C) Choice C
D)

Thurmond, Inc. has two divisions, one located in New York and the other located in Arizona. New York sells a specialized circuit to Arizona and just recently raised the circuit's transfer price. This price hike had no effect on either the volume of circuits transferred or on Arizona's decision of whether to acquire the circuit from either New York or from an external supplier. On the basis of this information, which of the following correctly shows the effect of the transfer price on divisional profit and overall company profit? $$\begin{array} { l c c c } & \text { New York Profit } & \text { Arizona Profit } & \text { Thurmond Profit } \\\text { A. } & \text { Increase } & \text { Decrease } & \text { Increase } \\\text { B. } & \text { Increase } & \text { Decrease } & \text { No Effect } \\\text { C. } & \text { Decrease } & \text { Increase } & \text { No Effect } \\\text { D. } & \text { Increase } & \text { Increase } & \text { Increase } \\\text { E. } & \text { No Effect } & \text { No Effect } & \text { No Effect }\end{array}$$

A) Choice A
B) Choice B
C) Choice C
D) Choice D
E) Choice E