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transfer pricing

NNoah5y ago
sir the maximum price that the buying division would be willing to pay to selling division would be, selling price of a product say, B less marginal cost of B less FCs? Or FCs will be ignored when calculating the maximum price willing to be paid by buying division?
John MoffatJohn MoffatTutor5y ago#1
As I explain in my free lectures we ignore fixed costs on the assumption that they will be making other products - not just the product being considered.
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