PROBLEMS Myron Rangard‚ national sales manager‚ and David Olsen‚ Director of Procurement at Fe nix Del Sur LLC have been assigned the task of reviewing a pending contract with a mass-merchandising department store that would entail the tripling of replica production‚ and more particularly a full assortment of authentic items. Rangard and Olsen must first consider the long-standing reputation that Fe nix del Sur has built as being one of the most reputable sources of genuine and authentic artifacts. Presently
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30% of out of pocket costs 120(30%*400) Total 288 West Papers Costs Total 430 Eire Papers Costs Outside linear(Southern div) 54(60%*90) Printing(Thompson div) 25 Own Supplies 312(432-5-36) Total 391 As shown in the calculations above‚ Northern should accept the bid from Thompson division as it has the lowest cost if all transfer prices within the company were calculated at costs. Incurring the lowest costs would also enable Birch Paper Company to earn the highest profits possible. 2. As alternatives
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Topic TRANSFER PRICING TRANSFER PRICING is a term used to describe all aspects of inter Company pricing arrangements between related business entities‚ and commonly applies to inter Company transfers of tangible and intangible property. Inter Company transactions across borders are growing rapidly and are becoming much more complex. Transfer pricing refers to the internal pricing system that is used when divisions in the same firm deliver products or services to each other. The transfer price
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Background: • Nevado Del Ruiz is an active stratovolcano located in Colombia. • The volcano lies on the Andean Volcanic Belt which is produced by the subduction of the Nazca plate beneath the South American continental plate. • The volcano has been active for 150‚000 years – the eruption in 1985 is the most recent after being dormant for 69 years. • Eruption: • A rise in seismic activity was first noticed in late 1984‚ and by September 1985 people were warned an eruption was likely‚ with
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Fe’nix del Sur‚ LLC Case Analysis Jamil Caldwell Overview: Fe’nix del Sur is a limited liability company that sources and sells a wide variety of South American and African Artifacts. They originated as a trading post operation in the early 1990’s. They are also a major source of southwestern Indian authentic jewelry and pottery. Fe’nix del Sur‚ LLC has a full line of replicas of authentic artifacts they sell to gift buyers. Recently‚ the company was presented a contract that could potentially
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transfer of property Introduction to TOP Act What is the meaning of "transfer of property" for the purpose of the Act? [pic] The term "transfer of property" as defined by S5 means an act by which a living person conveys property in present or in future to one or more other living persons‚ or to himself or to himself and one or more other living persons. In this section‚ the term‚ ’’living person’’ includes a company or association or body of individuals whether incorporated or not.
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149 Control w it h fairness in transfer pricing A transfer price is useless unless unit managers feel they are being treated fairly while top management retains control Robert G. Eccles It seems straightforward on the face of it: when a unit in a company sells a product to another unit‚ it ought to charge a fair price. That price may be based on what it cost to make the product‚ or on the market price of the product‚ or on some combination of these two. But as most managers
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Del Monte Foods Company LBO Deal Report 1. Del Monte Foods Company (DLM or ‘the company’) is one of US ’s largest producers‚ distributors and marketers of premium quality‚ branded pet products and food products for the retail market. It is the world’s sixth largest manufacturer of preserved food‚ and the leading producer of both preserved fruit and preserved tomatoes . Its pet products segment includes brands like Meow Mix‚ Kibbles n Bits‚ Milk-Bone‚ 9Lives‚ Pup-Peroni‚ Gravy Train‚ Nature
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Group Case Analysis Project: “Birch Paper Company” ------------------------------------------------- Question1 Mr. Kenton should accept Bid #2 – West Paper Company at $430 as it was the lowest bid and thus will give Northern Division the highest return. Under the current company policy each division is judged independently based on profit and return‚ thus Mr. Kenton would only be interested in his own division’s success and not the overall success of the company. -------------------------------------------------
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The Great Dome One of the biggest questions in archeology has been how the dome on top of the Cathedral of Santa Maria del Fiore was built. Scholars know who built it‚ but they don’t know the means of its creation. Filippo Brunelleschi was the man and mind behind the creation of the dome. The Cathedral of Santa Maria del Fiore has managed to raise several questions and curiosity amongst scholars. In the early 14th century a feud between Florence and other emerging cities began‚ each trying to
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