Transfer Pricing and Division Performance Evaluation at Samsung

Requirements:

• Develop a transfer pricing policy for Samsung's semiconductor division to ensure fairness and efficiency in intra-company transactions.
• Calculate the minimum transfer price for Samsung's semiconductor components, considering variable costs of $500 per unit and a desired profit margin of 20%.
• Evaluate the impact of transfer pricing policies on divisional performance evaluation and corporate profitability at Samsung.
• Recommend strategies to optimize transfer pricing mechanisms and enhance divisional performance at Samsung.