Question: Transfer Pricing at Microsoft Values: Production Cost: $45 per unit Desired Profit Margin: 20% Requirements: Determine the minimum transfer price. Evaluate the impact of the

Transfer Pricing at Microsoft

Values:

  • Production Cost: $45 per unit
  • Desired Profit Margin: 20%

Requirements:

  1. Determine the minimum transfer price.
  2. Evaluate the impact of the transfer pricing on divisional performance.
  3. Discuss alternative transfer pricing methods.

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