Problem 18 A company fixes the inter-divisional transfer prices for its products on the basis of cost plus an estimated return on investment in its divisions. The relevant portion of the budget for the Division A for the year 2012-13 is given below. Particulars Amount in ($) Fixed Assets 5,00,000 Current Assets (other than debtors) 3,00,000 Debtors 2,00,000 Annual fixed cost for the division 8,00,000 Variable cost per unit of product 10 Budgeted volume of production per year (units) 4,00,000 Desired Return on Investment 28% You are required to determine the transfer price for Division A