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What is the Wholesale price to Music Superstore (transfer price)? Determine Optimal Transfer Price Given data Malaykey Data Production cost $120.00 Transportion cost $10.00 Wholesale
What is the Wholesale price to Music Superstore (transfer price)?
Determine Optimal Transfer Price | |
Given data | |
Malaykey Data | |
Production cost | $120.00 |
Transportion cost | $10.00 |
Wholesale price to Targetmart | $200.00 |
Wholesale price to Music Superstore (transfer price) | ??? |
Other Malaysian Manufacturers' Sales of Keyboards to United States | |
Markup on total cost | 60% |
Targetmart Data | |
Markup on total cost | 50% |
Retail price to customers | $360.00 |
Music Superstore Data | |
Retail price to customers | $342.00 |
Tax Rates and Import Duties | |
Malaysia corporate income tax rate | 30% |
Malaysia non-treaty withholding tax rate on dividends | 25% |
U.S. corporate income tax rate | 21% |
U.S. ad valorem import duty | 20% |
U.S.-Malaysia tax treaty withholding tax rate on dividends | 5% |
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