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Required Provide Paul with a recommendation regarding DC's transfer pricing policy= performance evaluation system__ and compensation scheme. Use the following case analysis format and section
Required Provide Paul with a recommendation regarding DC's transfer pricing policy= performance evaluation system__ and compensation scheme. Use the following case analysis format and section headings to address the requirements listed within each section: a. Problems and issues: Identi and discuss issues with the company' s transfer pricing policy= performance evaluation method, and compensation scheme. b. Data analysis: Compute the return on investment for DC using the amount of net operating assets in the context of the present transfer pricing policy. Determine the minimum transfer price for DA and the maximum transfer price for DC. How should the transfer price change in order for Paul to earn the bonus? c. Alternatives: Identify three alternative transfer pricing policies that could be used by the corporation and the consequences of these choices. d. Criteria: Idemi' the criteria that should be used when selecting a transfer pricing policy based on return on investment. e. Analysis of alternatives and recommendation: Using the criteria developed in part (d)= analyze the alternatives identied in part (c) and make a recommendation. f. Identifyr the factors that will aect the business operations of a corporation if it decides to buy or manufacture product abroad
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