Transfer Pricing at ExxonMobil

• Values:

• Division A Cost: $20,000,000
• Division B Revenue: $30,000,000
• Negotiated Transfer Price: $25,000,000
• Requirements:

0. Analyze the transfer pricing issue between ExxonMobil’s divisions.
1. Calculate the divisional profit under the negotiated transfer price.
2. Discuss the challenges of transfer pricing in multinational corporations like ExxonMobil.
3. Recommend strategies to improve transfer pricing policies at ExxonMobil.