Transfer Pricing Issues at Samsung

• Values:

• Division A Cost: $2,000,000
• Division B Revenue: $3,000,000
• Negotiated Transfer Price: $2,500,000
• Requirements:

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