A Division of Saskowski Company Is Located in Bulgaria

Multiple Choice

A division of Saskowski Company is located in Bulgaria.The country places restrictions on the amount of funds that may be paid as dividends to foreign owners.If Saskowski Company wants to maximize the amount of cash received from the foreign division,Saskowski Company should set a ________.

A) high transfer price for goods transferred out of Bulgaria
B) high transfer price for goods transferred into Bulgaria
C) low transfer price for goods transferred out of Bulgaria
D) low transfer price for goods transferred into Bulgaria