Transfer pricing

This topic has 3 replies, 2 voices, and was last updated 6 years ago by John Moffat.

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January 13, 2020 at 9:49 am #558253
garvit
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Hello sir
I am referring to question 284(CTD) part b of Kaplan revision kit.
I am writing all relevant facts.
Divisions:
FD – transfering
TM – buying

Target RI calculated RI
FD. 85000. 0
TM. 105000. 180000

No. Of units transferred- 15000
Transfer price- 66
Target must be completed for bonus equal to 5% of RI. and both manager want to receive required targets.
Calculate
TM- max TPrice
FD-. min TPrice
What they did I was completely unable to understand why they did in such way.
Ans max 71
Min 71.67
If you have any other way to ans please refer to question.
Thank you sir.
January 13, 2020 at 11:32 am #558325
John Moffat
Keymaster
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I do not have the Kaplan kit (only the BPP Revision Kit) and I cannot help you without seeing the entire question.

If it is a past exam question please tell me which exam date.
January 17, 2020 at 5:14 pm #558980
garvit
Member
- Topics: 41
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Nopes that is not a past exam question
January 18, 2020 at 7:11 am #559000
John Moffat
Keymaster
- Topics: 57
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In that case I am sorry, but I cannot help you. I do not have the Kaplan Kit and what you have typed cannot be the complete question (and the answer as per what you have typed makes no sense.)
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