Company A has several divisions including a Capacitor Division that sells capacitors to both internal and external customers. The company’s X-ray Division uses capacitors as a component in its final product and is evaluating whether to purchase them from the Capacitor Division or from an external supplier. The market price for capacitors is $100 per 100 capacitors. Steven Williams is the controller of the X-ray Division, and Phillip Snyder is the controller of the Capacitor Division. The following conversation took place between Steven and Phillip:   Steven: I hear you are having problems selling capacitors out of your division. Maybe I can help. Phillip: You’ve got that right. We’re producing and selling at about 90% of our capacity to outsiders. Last year, we were selling 100% of capacity. Would it be possible for your division to pick up some of our excess capacity? After all, we are part of the same company. Steven: What kind of price could you give me? Phillip: Well, you know as well as I that we are under strict profit responsibility in our divisions, so I would expect to get market price, $100 for 100 capacitors. Steven: I’m not so sure we can swing that. I was expecting a price break from a “sister” division. Phillip: Hey, I can only take this “sister” stuff so far. If I give you a price break, our profits will fall from last year’s levels. I don’t think I could explain that. I’m sorry, but I must remain firm— market price. After all, it’s only fair—that’s what you would have to pay from an external supplier. Steven: Fair or not, I think we’ll pass. Sorry we couldn’t have helped. Is Steven behaving unethically by trying to force the Capacitor Division into a price break? Comment on Phillip’s reactions.