Ute Semi-Conductor Company Problem #2 Ute Semi-conductor superchips superchips External market Superchip Variable cost $170 Selling price $500 Market Demand 10,000 Hours/unit to produce 3 Max 30K Ute Mini-computer Production capacity of semi-conductor = 90,000 hours Ute has a 100% owned subsidiary (Ute Mini-Computer) that wants to purchase super chips. What should Ute establish as the Transfer Price Policy under the Optimum Transfer Pricing method? 3
Ute Semi-Conductor Company Problem #2 Ute Semi-conductor superchips superchips External market Superchip Variable cost $170 Selling price $500 Market Demand 10,000 Hours/unit to produce 3 Max 30K Ute Mini-computer Production capacity of semi-conductor = 90,000 hours Ute has a 100% owned subsidiary (Ute Mini-Computer) that wants to purchase super chips. What should Ute establish as the Transfer Price Policy under the Optimum Transfer Pricing method? 3
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please provide the Transfer Pricing Schedule/Policy under the Optimum Transfer Pricing Method for the attached problem.
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