Transfer pricing ( managerial accounting )

PT Fresh Juice is a company that produces fruit juice with various variants packaged in glass bottles, plastic bottles and plastic cups. In early 2018, PT Fresh Juice bought a company, namely PT Kreasi Gemilang which was used as a subsidiary, PT Kreasi Gemilang producing various packaging for both food and beverages. The management appointed PT Fresh Juice as the Fruit Juice Division and PT Kreasi Gemilang as the Packaging Division.

Usually PT Fresh Julce buys plastic bottle packaging from a supplier at a price of IDR 3,400 per unit, but for 2019 the supplier informs that there will be a price increase of 10%. Therefore, for 2019, PT Fresh Juice intends to buy 50,000 plastic bottle packaging from PT Kreasi Gemilang.

If PT Kreasi Gemilang fulfills orders from PT Fresh Juice, the variable production costs increase by 10% because there are additional ingredients in the form of complementary materials. But promotional expenses and shipping expenses can be saved, therefore sales and administration expenses can be reduced by 20%.

In 2018 PT Kreasi Gemilang has data from the plastic bottle packaging division as follows:

production capacity: 300,000

production units: 250,000

sales units: 250,000 units

selling price per unit: Rp 3,600

fixed overhead costs (F MOH) is 20% of the cost of goods sold ( COGS)

The Plastic Bottle Packaging Division's Profit and Loss Report for the Period Ended on 31 December 2018 is as follows:

Sales 900.000.000

-/- cost of goods sold 550.000.000

Gross margin 350.000.000

-/- variable selling & administrative expense 60.000.000

-/- fixed selling & administrative expense 72.000.000

Operating income 220.000.000

In 2019, PT Kreasi Gemilang made a decision for the plastic bottle packaging division, that there would be no increase in selling prices because it is predicted that in 2019 there will be no changes in production costs, sales and administration expenses and production capacity are the same as in 2018. With the information and data above , will there be a sale and purchase of plastic bottle packaging between PT Fresh Juice and PT Kreasi Gemilang in 2019 Jlka for 2019, PT Kreasi Gemilang:

1. Will produce and sell 300,000 units to outside parties.

2. Will produce and sell to the company outside the company as many as 250,000 units.

3. Will produce and sell to parties outside the company as many as 270,000 units.

Requested: Calculate the transfer price ranges for each of the conditions above.

Transfer pricing managerial accounting) PT Fresh Juice is a company that produces fruit juice with various variants packaged in glass bottles, plastic bottles and plastic cups. In early 2018, PT Fresh Juice bought a company, namely PT Kreasi Gemilang which was used as a subsidiary, PT Kreasi Gemilang producing various packaging for both food and beverages. The management appointed PT Fresh Juice as the Fruit Juice Division and PT Kreasi Gemilang as the Packaging Division Usually PT Fresh Julce buys plastic bottle packaging from a supplier at a price of IDR 3,400 per unit, but for 2019 the supplier informs that there will be a price increase of 10% Therefore, for 2019, PT Fresh Juice intends to buy 50,000 plastic bottle packaging from PT Kreasi Gemilang. If PT Kreasi Gemilang fulfills orders from PT Fresh Juice, the variable production costs increase by 10% because there are additional ingredients in the form of complementary materials. But promotional expenses and shipping expenses can be saved, therefore sales and administration expenses can be reduced by 20% In 2018 PT Kreasi Gemilang has data from the plastic bottle packaging division as follows: production capacity: 300,000 production units: 250,000 sales units: 250,000 units selling price per unit: Rp 3,600 fixed overhead costs (F MOH) is 20% of the cost of goods sold ( COGS) The Plastic Bottle Packaging Division's Profit and Loss Report for the Period Ended on 31 December 2018 is as follows: Sales 900.000.000 cost of poods sold 550.000.000 Gross margin 350.000.000 - variable selling & administrative expense 60.000.000 - fixed selling & administrative expense 2.000.000 Operating income In 2019, PT Kreasi Gemilang made a decision for the plastic bottle packaging division, that there would be no increase in selling prices because it is predicted that in 2019 there will be no changes in production costs, sales and administration expenses and production capacity are the same as in 2018. With the information and data above, will there be a sale and purchase of plastic bottle packaging between PT Fresh Juice and PT Kreasi Gemilang in 2019 Jlka for 2019, PT Kreasi Gemilang: 1. Will produce and sell 300,000 units to outside parties. 2. Will produce and sell to the company outside the company as many as 250,000 units. 3. Will produce and sell to parties outside the company as many as 270,000 units. Requested. Calculate the transfer price ranges for each of the conditions above 220.000.000