Compute the profit for your entire firm based on your answers to questions 1, 2, 3. Comment on what happened. Was CEO’s decision to apply a new transfer pricing policy fair to both divisions? Please explain (25 marks).
Have any ideas on improving performance in Assembly Division? You should suggest a program and prove it with calculations. (25 marks)
Give a recommendation based on the information you have about balance scorecards for which performance measures would be best for each division. To show how the performance measures are linked (25 marks), draw a strategy map.
Component and Performance Assembly Division
The firm’s wide profit is determined as follows;
The diversity of the business divisions has resulted in an increase in the net distribution profits. A high level of performance is implied by the increase in organization’s total profit. Transfer in pricing raises the contribution to the margin at a significant rate, which is important for the company’s profit. In this example, the contribution margin for the component division is $65, while that of the assembly division (Kumar, 2021). Through a series shifts, the stipulated figure has an impact on the overall profit of the company. A higher percentage of assembly division results in a greater profit margin. This is due to the increased allocation of resources. Within the respective divisions, there is an increase of profit margin.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more