Manufacturer of printers aimed at small businesses

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Reference no: EM131221051

Buddy Printers is a manufacturer of printers aimed at small businesses in the US. The typical model sells for $500 or less and comes with the initial toner cartridge. The average owner of these printers would replace the toner cartridge four times over the life of the printer. The Printer Division of Buddy obtains the initial toner cartridge from the Toner Division of Buddy. The Toner Division also sells cartridges to retail stores to sell as replacement cartridges for 70% of the final retail price of $50. What price, if any, should the Toner Division charge the Printer Division for the initial toner cartridges? Justify your answer, indicating any possible concerns of both the Printer Division manager and the Toner Division manager. please explain in detailed lamens terms! Show your work for any calculations and cite any outside references used.

Reference no: EM131221051

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