Sir,
Hw about this
if using lost contribution 54000 and cost saving 15000, how to explain and say it will impact on company’s profitability?
I can understand the (13 X3,000 units)=39,000 this concept of doing.
BUT, I not really understand by using -54,000 +15,000 that concept.
Can explain briefly to me?
thanks
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Transfer Pricing (con't)
7y ago#1You will not be asked to explain it in words in the exam!
However I did explain it in one of my previous replies to you:
The loss to the company is the 54,000 lost by Left plus the 15,000 gained by Right, which is net 39.000.
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