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Transfer Pricing at IBM Values: Division A Cost: $60,000,000 Division B Revenue: $90,000,000 Transfer Price: $75,000,000 Requirements: Analyze the transfer pricing issue between divisions. Calculate

Transfer Pricing at IBM

    • Values:
      • Division A Cost: $60,000,000
      • Division B Revenue: $90,000,000
      • Transfer Price: $75,000,000
    • Requirements:
      1. Analyze the transfer pricing issue between divisions.
      2. Calculate the divisional profit under the transfer price.
      3. Discuss the challenges of transfer pricing in tech companies.
      4. Suggest strategies to optimize transfer pricing at IBM.

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