- 15 Marks
SCS – July 2023 – L3 – Q5a – International financial management
Calculate the group profits from the sale of HVSC based on the transfer price set at market price and 25% of Utopia's unit cost.
Question
As the Head of Finance of SavvyTech plc, the Director of Finance and Operations has assigned you to use the forecast data (Table 8) and the “additional information” provided to calculate the following to support engagement by the management team with the Board.
Required:
Calculate the group profits to be realised from the sale of HVSC, if the transfer price for the component is set at its market price, which is GH¢26 per unit (total Ghana cost) plus 25% of Utopia’s unit cost.
Find Related Questions by Tags, levels, etc.
- Tags: Financial Calculations, Group Profit, Taxation, Transfer Pricing
- Level: Level 3
- Topic: International financial management
- Series: JULY 2023
