Apple sets transfer prices between its divisions: Manufacturing division cost $60/unit, Retail division external market price $80/unit,
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Question:
- Apple sets transfer prices between its divisions: Manufacturing division cost $60/unit, Retail division external market price $80/unit, transfer price $70/unit.
- Requirements:
- Calculate the impact of transfer pricing on divisional profits.
- Analyze the tax implications of transfer pricing policies.
- Recommend a transfer pricing strategy that aligns with tax regulations and divisional profitability goals.
- Discuss the ethical considerations in setting transfer prices.
- Evaluate the performance of each division under different transfer pricing scenarios.
- Requirements:
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