Question: Transfer Pricing at Apple Values: Production Cost: $85 per unit Desired Profit Margin: 25% Requirements: Determine the minimum transfer price. Evaluate the impact of the

Transfer Pricing at Apple

Values:

  • Production Cost: $85 per unit
  • Desired Profit Margin: 25%

Requirements:

  1. Determine the minimum transfer price.
  2. Evaluate the impact of the transfer pricing on divisional performance.
  3. Discuss alternative transfer pricing methods.
  4. Recommend the most appropriate transfer pricing strategy for Apple.

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