Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
need only correct 44. Transfer Pricing under different situations Division X of KL Industries Limited is a Profit Centre and its entire production is utilize
need only correct
44. Transfer Pricing under different situations Division X of KL Industries Limited is a Profit Centre and its entire production is utilize internally by other divisions. The information regarding Division X is as follows: 25,000 units Annual Production *115 Material Cost per Unit 90 Labour Cost per Unit 35 Manufacturing Overhead per Unit (40% Fixed) Administrative Overhead per Unit (Fixed) 9 Apportioned Amount of Investment of Division X 75,00,000 30% Corporate Tax Rate You are required to determine the Transfer Price under each of the following Strategies: 1. 15% After Tax Profit on Transfer Price 2. 20% Return on investment (After Tax) 3. 15% After Tax Profit on List Sale Price, when Actual Sales (transfer) is made at a discount of 25% on List Price. 4. 30% Mark up on Marginal Cost is added to Total CostStep by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started