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Sir, in the part b, ii) what I did was, I went back from having the RI as 85,000+ (CE×12%) 90,000 getting 175000 as the controllable profit, why can’t I get the transfer price as 175 000/15000?
Though the answer was 66+6.67=71.67There is no Q328 part b(ii) in my kit June 2024
Unless you tell me the question name I cannot help you
Stop being obtrusiveim sorry sir for not mentioning it clearly… its from the old kit, Q CTD,
CTD has two divisions – FD and TM. FD is an iron foundry division which produces
mouldings that have a limited external market and are also transferred to TM division. ( ive typed a small part for your reference)
my doubt is…
Sir, in the part b, ii) what I did was, I went back from having the RI as 85,000+ (CE×12%) 90,000 getting 175000 as the controllable profit, why can’t I get the transfer price as 175 000/15000?
Though the answer was 66+6.67=71.67
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