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Implement transfer pricing at Amazon for inter-divisional sales of cloud computing services. Determine appropriate transfer prices for AWS services sold between different Amazon divisions. Calculate

Implement transfer pricing at Amazon for inter-divisional sales of cloud computing services.

Determine appropriate transfer prices for AWS services sold between different Amazon divisions.

Calculate the impact on divisional and overall company profitability.

Recommend strategies to ensure fair pricing and maintain divisional autonomy.

Services

Selling Division Price ($)

Buying Division Price ($)

AWS Services

$20,000,000

$25,000,000

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