Transfer Pricing at Samsung

• Values:

• Variable Cost per Unit: $30
• External Market Price: $50
• Internal Transfer Price: $40
• Requirements:

0. Determine the minimum acceptable transfer price for Samsung.
1. Evaluate the impact of different transfer pricing methods on divisional performance.
2. Discuss the strategic considerations in setting transfer prices at Samsung.
3. Recommend an optimal transfer pricing strategy to align divisional goals with corporate objectives.