However, we consider that both department are integrated and are part of larger unit who actually looks at profit then the transfer price shall be minimum $ 1.4. Answer 3 The best financial interest of the rubber department shall be to sell the product in the external market as the price quoted by external party to assembly department is below variable cost. Answer 4 The general transfer pricing rule can be applied in the given case as there is an internal CUP available with the company and goods can be transferred by the rubber department