Business
Business, 24.04.2021 05:00, QueenNerdy889

Assume you are the divisional head of Thompson. Prepare a one-page, single-spaced memo to the Commercial VP arguing for the transfer price between Thompson and Northern to be $480 instead of $430. In the memo, calculate and compare the a) total revenues and costs for Thompson, and b) total costs for Birch company as a whole, under the two different transfer prices, assuming that Thompson will produce the boxes for Northern. Include any qualitative considerations to strengthen your case.

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Assume you are the divisional head of Thompson. Prepare a one-page, single-spaced memo to the Commer...

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