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Implement transfer pricing at Samsung for inter-divisional sales of electronic components. Determine appropriate transfer prices for chips sold between the semiconductor and mobile divisions. Calculate

Implement transfer pricing at Samsung for inter-divisional sales of electronic components.

Determine appropriate transfer prices for chips sold between the semiconductor and mobile divisions.

Calculate the impact on divisional and overall company profitability.

Recommend strategies to ensure fair pricing and maintain divisional autonomy.

Components

Selling Division Price ($)

Buying Division Price ($)

Electronic Chips

$25,000,000

$30,000,000

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