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I got a question on transfer pricing of lamps
Division L with capacity of 450
External demand 380 @55. VC 30 and 1 for distribution
Internal demand 120 @ variable cost of 30 but externally cost 50
Policy to satisfy internal demand first
Advise the company inorder to maximize co contribution@Muzeonek – Welcome to OpenTuition’s forums! However, if you have a query for a tutor, you need to use the relevant Ask the Tutor forum https://opentuition.com/forum/ask-acca-tutor-forums – THIS post is an ACCA announcement.
Also, you do not appear to have a query for a tutor but are, perhaps, asking for an answer to an assignment “Advise the company ….”- our tutor forum service is not an answering service.
Have you watched John’s lectures on transfer pricing? See Chapter 18 links on this page https://opentuition.com/acca/pm/acca-performance-management-pm-lectures
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