Analyze the effect of both full-cost and variable-cost transfer pricing methods on cash flows using a spreadsheet program such as Excel.

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6050Week4Template_SpringTerm1.xlsx

Template

Week 4 Application
Full Cost Variable Cost
Division A Taxes:
Transfer Price
Less Cost (subtract)
Taxable Income 0 0
Taxes in Low Country (or refund)
Division B Taxes:
Sales Price
Less Transfer Price (subtract)
Taxable Income 0 0
Income Taxes
Import Duty
Taxes in High Country (or refund) 0 0
Total Taxes