Transfer Pricing at Samsung

• Values:

• Division A Cost: $60,000,000
• Division B Revenue: $80,000,000
• Market-Based Transfer Price: $75,000,000
• Requirements:

0. Analyze the transfer pricing issue between Samsung’s divisions.
1. Calculate the divisional profit under the market-based transfer price.
2. Discuss the challenges of transfer pricing in global technology companies.
3. Recommend strategies to improve inter-divisional coordination and profitability at Samsung.