Chg .

Transfer
-

Pricing
CFE
)
 chatting

¥
Binney :

Profits

1-

Sales -
T Cost
.

( Rename) C SP
.

) ⇐
( vctfc )

¥÷÷m⇒m÷÷mc@
 SI
Internet
Eaksmhpd r
Mp
=
=

.ee/
✓

Transfer
,
SK

ay
= Run;÷f
A
m¥

÷÷:¥e⇒÷±
n¥O÷÷÷÷¥
 Tof
EE
of

a
t.sk :&
.

-
<P=T

FY
¥
"

urd
←÷
-
.
.
 95
Before
I

Centralized -
Structure

⇒
Decision
making
is at Central )
Level
-
Tof .

Employees ⇒
fixed -

=
baby
 Time Division
-1$
I

MILK Curds Buttermilk

transferor

I
I

TEVYE
Tyner

oeaayt .gg
:
.
 Milk Curds
BMI

t
→

¥
E@
'

q¥
.

!ooµ¥ -
20,000*1

THI
.

@ ⑨
 After 1995
¥
:

Delegation of Authority
t

Responsibility

(
I
Responsibility

png.EC#tees
Establishment
of
Center

Decentralizes .
-_

( Fixed Salar ( Div 's that is Responsible

.yt
Bonus
for its
Profitability
profit as well )
.

of the Div ;D
 Annie

I:÷
.

in E÷÷

:¥⇒IfEiE¥ A
HOD & Teams
I
based
Bonus
the Div 's
on Profit of
=
 BE

I
Curd
milk =

( Profit Centric
)
. C Profit Centric )
I

100,000
Caeaciy
.

litres

÷÷÷:÷:ff÷÷* and
→
A pn.lk
④
:

To

A
①
29000b
 c⑧
ARE Profit
Milk Dir Curd .

Div .

Gpq¥
.

total beauty :

logoffs HI
.

litas

-291¥
29000
Ettmffddi stiffs gm
.

=
Recovery of
Demand *
Span of a.ve?ps.Gof )
Tfeeisiin
⇐

of

I
.
 Past
Milk Div
IIE Pm
Curd
.

Div .

total
:
. .

Extend .

old

iq%%n
Sf
vc
: to

92000µs
min

TI
-

Mz
4m

Hq
20,000 lls

TT I

1-
1-

LEI
10,000 19000lb 10,00 1-
met
my
.

@ MP gagooo + loogoo
@ re @ 100
@ Go , 16429000 Us .
⑧
 cas

FIT Anne Profit

Milk Curd

lls
Total
: 10,000
Red :

20,000
US
Milk
its of
Eff : 109000

¥÷.¥
q : too pried
ve :
60
Milk GI

I eatery
.

SEE ( Sacrificed )
.

@
⑨
 Learning 3 Cases
from
I

-1
=
Cersei :

Gse
.

Casein :

Tf:
t
tenor ⇐
Efim Tiggy .
enshrine
,
.
'
Engine
=

capacity PART Capacity

Occupied
'
I
-

TP Variable
Tp ⇐ Average TP =
MP
Cost of
-

i =
= T

occupied
Spray
:
MP

a-
98
 I
team . .
. .
o
seeds
TT

Divya
DB
I

:¥÷?n
5000 u

Pdt -
.

P Pdt .

g
-

extqy.ae-iq.o.gg
fatal .

)
SP =
30
cmofaf.ch cost to
20
VC
usable )
=

it
End .

make
the
of Rsaf
CEO
of
co .

- +

aaf.hn .
-
-

E Sanjay of

On atleast 3 Times
Read the
=
 Sell

LI
: :
tFapaste.iaiEIgFToolhbmshiRsI@pSdq.f.f
Tas

study
.

#
of stand Tf ;
Use will
(
.

on case

not be Incurred )
 Solution (Cas
"

⑦ Production Pdt P
Capacity of 250¥
.
-
-

Production =
25,000 units
Capacity
.

1-

-18000
External spare /
Salle
'

old
-
cagily
7000
units .

units

mulls
to÷¥
demanded Divis
by
VC :
20 18 -

5000 units
Gance
. .

:
)
'
> ntdermndnd
sapgg.mg .

- =
y
Fel Spare Capacity .
 Cersei :

fully Spare Capacity

I

1-
Max TP
Min TP
=

÷÷÷÷:÷i÷÷:÷÷÷÷÷÷
funk from ✓

's Clower of above

)
Transferor
?
viewpoint
run.ua from
transferee)
u

's view
point
 NEP :

:i÷ €
( MP -
Vsc ) :
(30-2)--28
⑧

toppwsohfy :( ist 'D

.

28

.ru?rae
on :*
Loner above
of
-

Range of TP : 18¥
Cersei
Productivity
:

:
29%0
I

1-
lexternae
Spare Isdb
demand -

2000
18,020 u

dated
Units
by B
=

5000 units
I
Case
Pandey Spare
-

of
Pasley Occupied
.
 TP
=

=
Men TP Max TP
= =

I Cmp -
Vsc
) : or

Spare @I Occupied @

i÷:÷÷÷÷÷÷÷÷t
Tooo
Tooo +

€
Rs .

120,000
¥ (
-

tower above )
of

' Rs
2hpm Rs
27pA
.

=
.

Range
if TP :
24-27
=
 Cascio
-

Production =

1801¥
Garity
,

a-
External Spartak
dot O

18000 =

It
this demanded
tf
piv
5000 units

Case
of Fully Occupied
:

beauty
.
 IP
T
-
,
Max TP
Min Tp . I

MP Vsc :
of

!
-

occupied
Grey capacity
? ) or

rct OC :
2b
A

CMP Vsc )
Toby
-

win
Afm
.
-
.
.

(30-2) Maan
-

27

=
If
=

Max Tpj smh site

Since Min TP >

is called
case
of Top .
deadlock ;
not
wherein Internal Tsf is possible
 tearing
Cersei :

Angrily A

1-
Min TP Max TP
= =

CTVC CMP )
Vsc
Vsc )
-

or

( vet ope costs.

Tvc Total Variable or

*
:

;D
cost
Csssateifot ME
-

Usc . Variable
feeling
Cost .
Cased :

fathomed .

=
Min Tp Max TP
=
=

i ( MP -
Vsc )
1- or

Occupied
spare ( vet Ope cost .

?
@ @ MP
or
five )
Eid
use

csssatifat
-

x
AEF Chair
of
saloon )
.
 figured
Case :

1-

Mind Max TP
=

⑥ p -

VSD CMP -
Vsc )
or

( vet ope cost ?.

omaE#fi
 Notes .

=D
In case
of Internee Transfer;
Vsc will not be Incurred .

D If these is
any modif.in/Alth
cost; will be seduced
it from
Substitute west
product
.

per
aeIeingxfip-I.im#q
Transferor

Think from
Mff
of
.
-

viewpoint
Transferee
D of ; it is a

Tadlock
TP>Mat
case and :

of
• not
possible
-

D Max TP will
majorly remain

Same in all cases .

So no need

calculate &
to again again
.
GEESE
:

Pdt CA ) Pdt (B)

Particulars
.
.

in In

300
sp

-0 VI
CIORM
100 40
.
Amat .

@ ( 4rem @

Rs 101pm) Rs 101km)

Labour cost

INP
go 160
'

120
100
Couth

I I
Rank
 Cosimo Total RM is limited
.
.

Sf
to 100 RM .

Pdt CA ) Pdt (B)

Particulars
.
.

in In

300
sp

-0 VI
CIORM100 40
.
Rmat .

@ ( 4rem @

Rs 101pm) Rs 101km)

Labour cost

INP
fo 160
'

120
100
Couth
Q5u
× No .

guts cioorntyormsuoormlam

Total Couth 1200 2500

pane ⑦ ⑦
 If there is
any
limitation
of
Materials Labour ,
a
Input
.

( Raw ,

Machine hrs . .
. .
)

then the decision will be taken

based
of
the
on concept
"

timeline factory key factor

" .

E ¥
Cent
L¥=
100
pin 120
.

-
-
-

10PM 4km
Lf f. .

u
.

Craw
ifaterial )
¥
a

the Cath
! Better
.

Higher .
the

Razing
 with
→
Transfer Pricing
-

Limiting factor
.

=
Gtf Dirt
:

Solution :

E I E

Sf 48 46 44

28
⑦ VC 33 24

Court 's : is 22 16
you

③
÷
⑦ hab .
hrs :
4 2
syd pm

Conk Heb
-

Eat
'
old 800 .
Joo
.

:
30

DiIA#
DII → sukst .

Pot ⑨ patios
'

@ Rs -451 -
 Steps to solve a On on

TP with
Limiting factor .

Step : be .

of
Total hrs
/ C Total tf )
required External demand
for satisfying
.

-0
If
based
I
of tf .

C hours ) on
Ranking
.

of Tferor
Divis
g Capacity
-
.
.

Allocation
.

CHAI
§atm2¥r÷€
¥
Sry

by
it

ut

Check
:

Internal
the
is

how

"
a

satisfy
case

much

tf
Contribution
the

.
of

and
Less

internal

hours
then
/

host
Restricted

are
demand

seq 'd
calculate
"
.
 la~fot.LYF.mxcont
! /)

Steps
.

MnP== Vc
of pdt
to
.

(4)
be tfd

(
.

9.71
foster of
.my
.

I
 D Total has
'
seed
for satisfying
Eat .

old
=

3km/h
X :
800W @ = 2600hm

Y @4hs/u 2000hm
.

500
a
.

.
u

@
Z 300
2km/h 600hL
=
: u

Tane brr sgd

2) Total hrs .

by Div .
A
-
on
6200 hours
A

I
used
by External spare Capacity
dd ' -

¥
1200homs@aIDiv.B
t 200hm
( 300 u

4)
"

of (300×4)
Hsr seed for
Spare beauty ⇐

sternal t of .
 As can be seen above it is a

from ;

g fig spare capacity

case .

qMP
→ Free Space =

capacity

Mind
Cvc of
unit to be
tfd ) .

Rs
=
-24

=
Rs 24 .

⇒ ma

I
;÷÷ :
:L .

Rayed
up :
24 # T
)
ii Cersei :
3800
*
hours :

-5000
Eat dd
Spare
:
.

hrs .

④
be
'

( full Gdernd old .

also cannot
satisfied .
)

Based on available hours

;
below is

the dish :

Total hours available : 3800 h

⑦ Pdt

To
:L
Used 600
by Z
.

"

(300×2) Hours : 3200L

Remaining
Used Pdt 2000L
⑦
by
.

YY ,

" )
Hours .

remaining
lmk
,¥!a÷m
÷
 :):
Conclusion
:
X 400W

::÷
:

"
2 :

hand
.

a si
Diva -
Div B
.

"
=

Hours seed
Y
" 1200hm .

for
( zoon @

4h14
=
 Total hrs available
-

3800 he

::o
poo hot

A
Sacrifice 120ohm

External Sales
from =

A
←
Sacrifice 1200 hot
of
Pdt x
.

( on sacrifice of 120ohm of X ;

@ Rssfhrcx ) ) totaeeffth-rs.SI/-
:
 .

M P =
Vc
of pdt
to
-

(4)
be tfd

(
.

+ (309×24)

÷a;h
fostered any . .ae

Rs -

-72001
+

Rs .

60001 -

Total aint .

:
Rs 13200
Di
.

oegd from

3⑤
(4)
÷
wk
7¥
No .

of

then IP
Max :

MP 46

!
art
(
Ifaput
a
It
Raff Min
Max
-

auf
=
-
asf
 Casein
:

5600 hours
-1
1-

Hours seed
for Spare :

External old :

- 600k
5000k
-

DIII
:
300Wh )

x4h_
1200hm
T
1-
600k 600L

occupied /
Span Sacrificed

(600×5)
←
Rs .

300¥
-
→
Mind ④ of unit to

be tfd .

1-

;tg
:3
among
(
.

=
B. 7200 ( 308×24/4
> ⑦ = Rs .
3000

T.io
300W

Ming
-

¥2
Mater MP to

I
.

↳
Toh .

v. as

Ray .
she
 Learning :
CTP with
Limiting
factor )
- .

I
Case :
-

Jey Spare fly past

occupied occupied

-
-
part
unit to
Spare
UC

mintpi.mn?tffketfdvcgItrbe
of

= tfd it .

Couth
be
tfd lost t
.

unit couth lost

y g
unit
sacrificed .

sacrificed .

be to be
Cflssito cuss .

sacrificed X
sacrificed x

earth
) her > couth
Ihr ) .

Max

Mp
Mpw or

Isubstjospqtsnhsastratftsnwshsfnatl
✓
 -

Division 2
Oz
- :

Particulars A B C D

160 130
Sf 150 166

⑦ VC 130 100 90 Sf

Couth 20 46 50 45
p.ve
.

②
÷hf .

pm
.

3 4 3 .

hours
)

D→D
( Labour .

centhlhabar 25 15
her .

Rank IV II I I

gsoow2sww2Bu@l6u00Driv.z
.

Eat old
.
.
:

↳
Total Labour snbst Pdt
201000kt
.

cost -_Rs125
:
frm available
'

=
→ )i Total hrs required for satisfying
external demand :

4600L ( @ )

-
-

Pdt C 2300W 2h
-

D :
4800L ( 1600 u @ 3h )

-480€
€÷÷÷÷÷
Hof

600€
Limited
.

Total
AN :

labour

hrs
-
20,000

available
-
hours
hour

:
available

20,000L
L
-4600L
-

-0 used c
-

by
Rem .
15,400W
-
⑦ used by D
'

10600L
-0 use B :
h
A
 Cgpaci5ofTferorD
h
29,000
1-
Eater nel
old -
Spare
=

Troon Nfl

¥
DIY → Pdt
( 2500 u

x 3D

=
7500L .

Since, these is No Spare capacity;

we

will have to Sacrifice our -

least ranked

Pdt seed 7500 h

sacrifice
:
.

600 h
⑦ Sacrifice PITA :

-0 Sacrifice Pdt B : 6900k

 Contributions fmfiadx#AntmY
:

Pdt A :
4000 ✓
(6 ooh @ 6-67 )

B- :
79350 ( 6900k @ 11.5 )
Couth lost :
83,350
=

Min TP =
( Vc of
unit to be ffd .

=
C pdt 'D )
t couth lost )

⇐ ( 250g x AT t 83,350

=
212,500+83,350
= 295,850 =
Rs .

118.34
* =
 A 600 h units
:
=
200 u
sacrificed
_zh
×20/Ionth/w

4000/-13
Re .

:
6900W

Th 1725×46/2
=

79350
←
 .
I

OE AB .NL Stay :B
:

- g
Diva DiB
- -

2A =
1B 16,000
20,000mi units
qp
goof
=

sp :
1500
=

:÷÷÷÷iii÷÷÷
C@zp
:c
FTorm.oou-osao.ogI@2o.E.
-

C
200pm
.

I 10,000
units
)
at

:@
Rental
"

Rs #
20,001 B

,
B. logon .

4mc" I
 tahitian .
-

County 380
Rft Rs
:

: 30,00

( 1500 too 420 )

wpydt.gg?hh7pgDDiv.A
-

)
-

( Net (210×2) -
Income

10,000k X
#
Nwf
:

pre :
Hoo ,
ooo

CoE
FFF
:B
:

onog
oof
.

-
 Div A sells
of Div 13
pm from
.

:
.

of .

Dina DIB

¥¥
M :

Sp :
220

190 ( Yoo ooo )

① re :
,

f from
Osei )
600,000
x No
units
'

of 20,000W
ad M :

- =

That .
: Rs .
200,000
F
-0 Fc :
leogooo
-

M : Rs .
200,000
 Dir.AGyacihy#hanumnt
.

A - struct
Div .

Feet
⑧
'

Carella : 30 20

20,000
×unNgf :
20,000
- -

60,000 + 40,00

C = I 0,09000
① FC
-

400,000

① At
lost
: .

180,000
Clsogoooxpif)

#
⑦ Addlfc :

NP -
Div .

A =

320,000
mbifi-pe.mg#ooo/-
④

-
Methods of

me
 r

Edible dig
QE
-

=p

#
Harvesting oil -

mill
D Divis mastering
Extracts packs
.

Oilseeds → →
Atl Oil in
Harvested
.

MIE ← met containers .

aootoigsg-slooa.iq?ygyg5Fang
lg.gg @ bang @ 1501C
@

101kg 3.75

2.51kg
VC :

Rs 19000 Rs 7500 Rs .
4375
(75×100)
- .

re
.

(5×2000) Cf tsx 500 )

 whenever On Says

Profit of
"

Overall
"

the co .

a-
Last Division
Transfer
@
.

S#mkt
cost and cost
of
✓

seduced .
 )
i Overall Profit
--

Sales Revenue :

75000
( MP x No .

of
n

) ( sooo x 1504

-0 VI 16,87T
:

5000+10,000+18
=
Couth :
58,12T
① FI
21,875
:

(19000-1750-14.375)
Net Profit :
Rs .

36,250
=
④ c

:
-

om →
Mktg

irtvana@G④
Shared couth

Sp =
TP ( Sale

isd.ws?.Yhinternd::::E:::Ei
 Shared Couth irt variable Cost

I
IT
I

I one I

visor
58125×10,000-58125×1871
58125×5-00 168K
16,8K

34,449 6458
17,222
-
a
⇐
-

- -
z
*
I

H Share shone of m
Shang
:

of
:
om
:

and conk and .

 shared hath ist
Cal TP
→ of (
.

Vc )
'

H M TP SP FYI

&2¥
=

⇐i¥§
=
=

H ⇒ TP -
-

SP =

µ -
som :
TP =

Couth t Vc
TP OMIT
:
TP Sp
- -

→
-
-

-12,222%
TP : GP =
34,444 t 10,000

If A 66,6661
-
⇐
.

-
Step :

calculate and
profit of
the
campy
.

Step "

Pick the overall

play
.FR/
forth
.
3
=
.

. Divide the overall

pngit in ratio
=

variable cost
g

I Couth )
TP =
-

Cvc t .

whenever Cel VC
we ;
alongs
include
Transfer Price Cost if
tart
rec'd from Traynor .
EID H → on → sp -

-
TP -
-

MI
) 12.51kg CMP )
It (H → om =

42000182
Rs 25000
TP -
-
.

⑤ om -2 M a MP
-

=
6%4 kg Cmp
)
x low kg

¥628
-
 Sp to

For
20
① VC

-012-30
-

g
so
Me

coo②=r¥Cf
r
 Couth Vc
④ Shared irt

Haw . on
m .

SP 222,22 66,666

on
'
-0 TPC
-

66,666
=
Couth 17222 34,444 645g
-0 FC 10,000 7500 4325
M 7222 26944 2084
=

s-ooohigo.io?YoE
⑤ Market

Ham
Price Approach -

ON M .

fp 25000 62500 7500

⑦ VC sooo
↳ 25000462500
lgooo Lf 75

⑦ npc
-

Ore lgooo Foo 4375

20,000 6250
pp 10,000
 PSE
OM :
SC irt VC

HIM :
M Paeroa a
 D TP Basics

Sums
D TP Basic

D Lif
.

9) TP with tf
D
mediums
If of
 's
Methods TP

of
I
I

Based
Negotiated
Cosytp mpartet
.

rice -

I
p

mayest =MpjfY①
.

.
MC t FC
Cost )
C Total
I
TP beth
Any
met
haydn
.

Shared Canthi 't Min -

Max o
.

to variable cost Tp IS
qp
Shared gfoaqnot.es
.

Profit int
PHI
.

(
to cost .

congruency
 I

Concept
:
Sub optimal Utilisation

tf Resources :

she
department head
/ Employee
does which results
things
in

his
personal benefit ignoring,

overall the
the benefit of company
.

¥ toooo

b⑤
7

a-
'

Eat dd

Foe
2go④ #
 great
most
Purchasing
Mgr of x±

Perryman
⑦ ⇒
a
RE
f-

÷÷*÷÷÷÷I
Bond ⑥
 done within
of Try .
is

the
range if
Mifp-My④,
it results in
God -

Congruence

-1
( win -
Wen Situation for
the individual depots & the

as a whole )
company
 Oz Confides
A

1-
Producing the Packaging
T Div
cornflakes
.

CTferor)
Ctfie )

-1
A

loads
1-
a-

MI Et market Eet
C excl -

Cine
.
.

cast ) 75000
) Ik 770W
.

cartons .
.

2L 102L
ooo
:
95000 8g
3L
 Overall profit

-50002
.

downfalls

÷
:
200,000 30,000
price

:Eo
!÷÷
FEE T
I
.

'

? .

-123090
a
 ( soon )
TP
of Plgdday
Pkg Dir - .
m -
-

CostM ) t

Tpofplgtsivtopdciy
proof 1923 =

TP=769€ Soooo

Tp
-

-
Cost t M
=
80,000 t 12,308

Tp=9Q30@
 Std
BE Maryanne
"

F-
Internet dd
'

-1
B
Dirt 49000 Div .

=
t

IET
Pdt 2 100,000 U

I
.
:

( full capacity)

Be
EPI I
Eatdd "
ooou

-070,16cg
✓
Sp : 2500

.fi/edd..Re.4agogooo/
Couth : 900
-

) (
Cost
Total fixed
.
.

)
Koo ooo

blog
' : ,

@ 11.54 53800,000
-

AE

Target :

250 , ooo ✓
profit
 Diva - Did
I
Gated "

6-0,000 U

I
@ 25W ( sp )

Reverie
.

-
 Backing

-
Target
✓
M .

250,09000

Target
④ FC 53800,00
"

:
78800,000
Carty

④ VC : 1600 , -00,000

( 100,000 u @ 1600 )

Target :
938800,000
Sales 1

External Balance Contend)

-

fffoo 000

1500,09000 ,
-

40,000W

⑧ Rs
2224
-
-

-
.
 Cee Min sp
=

Requirement Div B
of
.

40,000 U

T
1-

30%4 10,000C
based an
Sacrifice
cost
'

Me
tf
.

Tp VC 1600 Tp of
-

C Vet
-
-
a
-

Conti lost)

II (30,998ft 993%7
-

=
16001-90

↳
4¥ a 2500
BE
Businessconsultanyfirmll
IT -

Div 's
T

#
External end
GT=3P ) clients
clients
textile -

Div 'D
Sp
-
:
4500 :

so
o

:zsi÷¥÷
④
I A
T fertile IT

80¥ 2011 4500

pyo
I t
360

Nsc Rasool
\
-
:

-#dnded
Go
while
cel -

Int TP )
D If IT diva .
is
fully
* ed .

Fully occupied =
TP =

@ P -

VSD

=
4500
-
200

43001 Team
=

( 2T )
 ii
2T earns

T
1-
IT Spare IT fthtapied
- .

Reamy Jrc
TP -

Tp . MP -
use

1440 4500 so
-

- 20

12400 4300
=
-

5540/2
=

2770/-10
 )
iii
External .ME 1584,00
-

2T

TP .
?
Day
.

!÷
: "
27
1584000 :
"

oo : IT .

?
Vsc
Rs Team orgs of
. 792 ,
ooo
per
Tow
165001 Tfw
took =

sit
=
Rs 33 .
.
AE X

¥1
send -

I
Extend 2€14 :

35000€
I
Gp :3 @ Gp :
1200

① VC .

.
157 -0 VC : 355

¥143 -0 TPC
:2µ
Fc :

20,120001 -

ifc :

1350,0001
-

Ga5
Gf=Dd'--I9÷
:

-
 Gearin of Transfer Ace
#

ED
beauty of
X :

3,5000W

1-

SPILT
'
Mkt .

Dd
=

29
a

-15000W
Reg of .

: 10,000W
Div
.

+22,0000
of
C

X
=

Spare Capacity
.

hateful
typ =
HE = Rs
.is#-
ED Capacity
Jx:ow
I

1-
Eatdd spared .

19000C 1600€
I

Peggy :

19000×2

20,000C
-11
I
4000C
16000C
occupied
spare
1St Tp MP Soo
-

TP
-

Vci
.

.
-
-

185.60
Min

Aff
:

(16000×157+4000×300)
arid
35000C
Capacity of a :

Eat dd
.
No Spare

Foo Gf .

Rs
TP Mp 3001
-

= = .

=
 b) Ignore TP &
policy faeroe
.

all
carp
.
@
psastf
-

Ase (157-255)×20,000 ⇐

gtfo x 29000 =L
Profit

Caseiig :

(185.6-255)×2900-69.44
no
ooo -
.
t
Pyt

##
,

(30-255)×20,000 T
Casein) Profit
:
.

⇐
HI Ot Csr Ltd )
:

Uh
HE : :

pasta on XY

C 14)

Poteet .
.
④
Off ABHI .

:o)
'

C 96,000
hours )
Pdt .

X :

=
⑦ Rs
-
cost

Ext Dd
.
:
15000 Chen .

SP : 80 160 SP : 1450

t.soooziDDiv.tt#Div.B
:
.

:c :
:c
:c
:
.SN/-cmodifPdtxPdtI
Couth
Tpc Soo
:

:
180 Lo
-
pm
.

later
130
1h Couth :

hab .hr .
.

hab : I Ohm
Centhl : 45 Io m .

-
Lab her
Rank : I It Carty "
13

FC :
30L :
)
i Dir
.

A Sdk
of .

Div B
pm
.

f- as
H

Div . A :

Allocation of hours based an

Ranking .

Hours available :
96000L

⑦ Used
by X :
( 60,000 h )
( 5000
1 u @ Hh )

hours 36000L
Remaining
:

÷
Hours
limit .

14W
of y
Pdn
of
Pdt Y .

--_
:
36,000
units
 l¥€#t
.

=
Diva Dirty

3of
E ± E
So 130
Centffu 180
.

xwn.gg 36%0
:

Hoog sooo u

650,000
Total
Guts
: 2700,000 t 729000
0
↳ 34,790001
-

-0 Fc re i
too ooo
,

Nf :
420,000
:a*
hotshot 579000
=
 .3
Try ?
ID nternd . @ Rs .

Goof
-

96000k

:C
Diva
Divi

E I E

Could
) 180 20
Cath 130
:
: -

u i

"
: so

www.#f:2o.ogo:@-0NhfhIt
a÷÷:÷÷⇒ = 16000hm .tl/hr/w
x :

-
5000W

: 250,000
=
16,000W -0 Fe :
soo ooo
,

Toth :
360,00
92900
↳ 3920,000
fatalI M Capon )
"

⑦ PC :
30,09000 -

67900
-

M .

990€ -
 iii)

gntw.to/Div# ( 96000
hrs .

I y z

⑤ so③
= =
a

T Couth

⇐9:÷ /
: 130
SE SE F

::¥t÷:¥
"

520,000
.

Garth

x
:

352,0000
Iso

Hoof
-
100

town
×mN§G

total :
-
: sooo

650,000
Corte
f 32g
ooo
.

9700,000+50,0000
① Fe
:

670000
-
=

⑦ For 3009000 159000

pf
:

-
total "

M
567¥
:

=
 Olton :
As it results into

Overall and
a
high profit
both Divisions are in a

win Win Situation .

=
 -

89 :

Atd tho
Tycoon
.

-
 #
q
.

"

810 XY
I =

Dsv Y
Div A
.

-
IT
.

Tp @ Rs
901 -

Pdt .

P
=
=

Profit .
St .

of Div . x .
Gp @ 90

5000¥
thud -
Sale : Code :
HI

)
°

450,000

562,500
19000
412,500 e%%ooN+
909000
337500 )
O °

15,000
1350,000 123700 112,500 °

(94-337500)

1809000
2g ooo .

as;ooo 2259000 .

30,000 2709000 ,

,
 At go
puff g y :p .

Units Sales Mtg

best
Tpc profit

5000W 1969750
1406950 450,000 112,50
(5000×395.75)

101g 785,00

90,0039750
2250,00012GW
( 10,000 X 06250-1
MAD ;
c sooo XS 6-25 )
IN 393,750
1359000

1700
HIS I sooooo

25k )

301C Hog ooo C 999000 )

 's
when Dir x my is Max .

⑨
.

39090

④
:

994003
54cg
ooo

od
-

max .

A Me the
Hoog
:

° 39750 39,750
=
 )
iii
If TP@It_

Units fate .

M¥19 ) WE If

5000 1406250 562,5N

⑥
I gastro

19000

poor
 OE
H

CBI WE
<\D=4CBD①

Easl#N
:s%÷::
Gyacity

171-0,0-00
:
320 12

no

cost .

FC :
92920,000 16,45 , 36,000
p⑨ r⑨
Tender @ AP N
@ gp :
329000 : No : :
,9endw
top :
19000 Rs .

I QP :
50,0A

ADD
'

: 30
into .

Add guilt
'
:

⑨ ⇐

⇒ ④ 590-200=25000
⇐
 Reseda
.

Cal .

Qp :
( wagon Dir )
← I

ra
④
-
-

!
-

CE
MR =
a - 2b
r
✓ ✓

T⑨y
p @ notation
price
kind
Cltndoteatniuitu

price which there is

"

marginalizing
a = @
✓
Demand
"
No -

b D in Price

Gydemanded-
=

Man
Qty sold to earn
B optimum
.
-

profit .

Mr =
 MR =
a -
2b 9
Pt Maximization is where
.

of Profit
( marginal cost )
MR ⇐
MC .

( Variable cost
ng

=e⑧
MR = a -
2b
g
-

Mtostwqgignj
t Tri
⇐
vqoagm, Bing coset
,
=

(220,000×4) =
480,000 t 880,000

136,0000
=

=
 @

←
0,000=171900 2§g
: .

MAME -

B69000-fagooo.ee
I 50,0mg
-

350,00 =

B =
7

D= a -

by
=
17g ooo -

2500×7

=
1719000
-

Intro

=
15,3500
-
④ Pyd
.

Oop CwgonI
Af

In last while
past ,
calculating
Cost
marginal for WD
; we

had Taken TP @ Variable Cost

of CBD .

But noo

TP@mgdjf
,

I
to
Jn order Cal
HBD
.

Glaude
we will
=
 slept
:

cae.gmPofCBDp-q-ub9OXA@R-uq-2ub9QmrFmce3ao.oo

-4×19%4%00
I
2ogoaf=3goo
( variable
of CBD
cost

Bff g
-

19009 (150%30)

:⑥⇐lw
-

I ooo =

Tt
-

i . 1500,00 =
19000 a
P -
.

a -

b 9
r

¥
329000
- -

190¥
50,900 =

=
-270,0004€
320,000 -

A
W

cost
May
-

I
WD
Tp for
(279000×4)
←
 WII MR .
- MC =
a -2kg
a
MR .
ME
(2%000-148900)=1710 ooo
,

4900=11
Gg
-

to ooo t

KfeE)x9
gon
-

so
,

g
b Q
p a
= -

ooo 50 ooo
177g
-2×3
-

= ,

Ing toooo
¥100
= on -

⇐
 Goatcongruence
into TP that results
Entering
a

Win Situation
"
"
Into a -

Wen

for Transferor t
Transferee

and that is when

possible
is between
Transfer

[#
"

Min to
Max TP
'
'

Ignores
Tfa
is
✓

Ensures Tferor changed

not
its being
scores Its
cost -1 than
cost
marginal more
pdt
.

contribution Substitute
or
any best
MP of Tforor
- -
 and
If TP is within
range
still
Tgeror
sells to olsmkt
or Tfee purchases from ofsmkt .

The on an overall
company

basis will loose .

7P
Mind Max
af
-

( 45
so -

Tferor
.¥e
Calls ) c pm
-10,000 u
19000 w

I k
@
491Gt e.
@
5210A
No Goal Congruence
 the
Sf TP is in
range
&

internal Tsf is ogd then

definitely Tof
shard happen

hi thin depths to promote

goal congruence
.

Situation
( win win
for
Tfee R the
Tyner,
as a
whole )
company
An "

AB Ltd .

T
-1
1-

DIA Diva

Malvo :
Rs 10

-1 I

mind Rssof

mc/vc=Rs⑤
Edermql
.

)i Since Div .

A has no external market

,

Tf
will
ie
Spare capacity
full
. :

be @
VE ie .

rs.IO/-CMinoD
IID Div B
Sf can
buy pdt A
.

Assumed that
@ Rs
externally
.

my C
A
pdt
= .
has

external mkt
¢

1-
@
pesky )

Min TP Max TD
=

= MP Dir .
B is

say to
Reef pay
=

peut =

Min -

Max
m
Tp

12£14
 ,
Assume Div A has no External
ID r
.

, at
µ

-
Div B
⑨ Dir B
purr from
can
four from
.

.
can

Mkt @ Rs If
OH mkt @ off
.

ps.ly
.

Div .
B will never
Ext
.

Dif No
.

ps.gg
=
@
Purchase
.

market
as it results into
= full Spare Div B
a lots to .

capacity
µ of REI

(20
cost

Mif =
;
ftp.rs.io/- Csp -

-
23)
Cst 'D

toss of Rs 3
Suhst
,yf
.

.
.

Man = µ .

's
pdt
.

A
Haran Div
'

pp .
.

cost
min TP Rs
of
=

B
of Div
.

may Tp =
Rs .

If -

14
10
CRY fostering
-

min Max
-

- :
Regent
 Noext.menketforhir.LA

:st
:#
i
④

rig
'
/
Big -
Rs .

Iof -

→
p④
④
Diff
eat
Him

*o÷÷÷÷÷¥9
 -

ft
.

cost
AE AB Suhstpdt
copy =
-

⑤
If

tch
H = Rs . -

P
④
Diva
590
Ding

Pdt
t
cette t
CIA = 1B)

HEHE
→
390mi

Eat
pdt.BY#g@Cr:eTrno%aciy-:usoI*
a g
.

Sf
.

.
External
So 70 demand .

55 ⑤
vmfg .
55 -

Usc 10 - :
IF
festoons
:

usc .
-
⑤

Avoided ↳ Supply
.
TP

tussah
.

To

=
¥

T
?
'

Eat

)
Div A sells Mkt

cord
Spl

IT
Diva →

⑤
Diva → B :
5000
←
.

30,000W
lsooow.is
Div A → B :
45000
✓ a -
Eat Mkt
DIVA sooo is
u
→ :
.

DIVA → Eat Mkt

30,000W
: is .

Div A → B :
2.9000W is

order
DIVA Spl
:
→

DIVA → B : 35000W

-
 Profitability
Ext Div B -

splord
Dizvffeg )
.

=
.

ME
C
Paddy)
=

SP SO 75 70 70

vmc
55 55 S5

at
=190
Usc 10 -
-
-

⑤
gently 20 15
profit

Logically; 8
naiffrenept
.
=

590¥02

Any sale beyond 19000W will freeze

the Fc @ 580004 will be a better I

orison
 's Eat Mkt

definitely
is
If Divi A

30,000W
-

then it will sell

.

@ 20,000 units
remaining Otg
.

which
.rs higher than the

indifference pt of 10,000
.
u .

SO Foh = Rs 0001 -

gnaw

gge,µY,d
Amid use

=
As can be seen above
from
Div A Shared
workings ;
.

all went
sell ogd by
ie 45000 unit
Div B
.

wink to Extend
plus sooo

Mkt .

Pray .tw#mdw .

Div A → B :
45000 u @
DIVA → Eat Mkt : sooo u is
 Profit

7¥
⑥
Go oooh
'

Sales to DNB
3375000
:
.

14500 @

Seles to Cat Mkt :

5000g
.

Hoo , ooo

( @

.
① EMI
risk
(50000×55)
:
:

2750,00
① C 5000 @ to
) :
50,00
①
fixed
:
C 50,00

① -

fixed cost C
upto 30k ) :

430,00
4
50,000
t
ooo

M 395,00
:
:
 Best
strategy : a
to B
Tof a sooo u

④Tf5ooo:utoeatm
④
other alternative
Any strategy
-

Maxi
O
mind
-

substitute
( pdt
.

:÷n¥ .
 Min TP
-11
1-
( Alternate Str .

is
adopted ) .

€;;\
.
30,0004 Etmtct
.

Div .

-45000€
$

506¥ u

sits
@affofm-tosaenIE.us
⇒
 total :

30,75000
-

45000 u

#=WApE
TP 68033 I Approach
=

Min

:
variable
of
aqposth
goods to be

tfd.EE#mtt/sgfw)
To t IT

Min Rs
Tp 74
= . -

Max me psst
=
-

←
 ÷gtst
2.3
BIJ BED
- :

*
¥

⑦
d
µ

T
e-
Pn
EI
.

t3←%t÷tI•
often Pmf

as
±

→ "

=
I
.

= q
orgs
barn
=
 D ttatementofaenlhp.ir#

④
DivX Div Y 2
Div
.

I =
=

I
1-

I I

inner
'm
E 't 1-

.tt
pw¥nm I

- I-
Sp 25 65 65

24%05
.

.EE
TP :

EEE
26

22
'
a

9=p①ah¥
s

9090
.

Dd

Voh
:

:
4
a
4 4 2
.

6 .

6 8 8

q 2 2

eat . "
 → Scope
if
Internal
Tiff Purchase

kgif.KZ
I I Z

Goo 300 300

@€
.

2⑤
E⑧
52€
④

:
's;
Total 12000 5000 .
.
.

% sooo 550
'

I
tddeat6@crorwgE.ofoenpma.T

9¥
a
Sales
Jntfsf Max
for
Max sales
. .

tooo
.

5000W sorrow
Scope ×

/
it it
IT
2000W 5000in
1-
Z Rome at
tf stuff .

200g ±
- I

4 2
 .

the above table is solved on the

that And
assumption capacity

be increased .

Lets thick the

profitability @

Each Level . based an Expansion

1-
.

E I I

Expansion St Lao snow

( to
: 2
4000
-
2000 to y )
'd
Add
Couth Earned .

64000 Oooo soooo

=

(2000×9) Gao
( 4000×11
t ×

2000×10 ) ID
-0 Adde
9000 2310
4500
:

re
- 490
900
Net
1901
Benefit =
I

Expansion
Expand Eapand
.

.
.
 Overall Co
Benefit
.

¥1 I
Cedd :

139000 :

4500
rpgoco
Ext :C 500×1 '

Csooox Caroll
500×11
2

9)
.

14 )
.

Y :
2000×10 )

ALR 450W 900

:

:
:
2310

method .l670f
:

Rs
 Jnten .

national
Transfer Pricing

#
fanDIED A C

PepsiCo
PepsiCo
doomed
-

#→

SP : Rs -40
Sp :
100
③
VC : no

⑧
:i÷
. .

DUBIE
wormed Tax

@vc-i4ofmEoi.r
EoTIs5oooE@tgIsI.k
.

A
Pepsi Dubai
coffee
Astraea .

.
-

a oltus
)
.

tomala
sp : 10 To
-

psia
SP @
vc
:
40
To
One @ Rs
,
flown re .

"
 Incoming
:

Ty n .

crafty Effy

o;¥w
:b
A

TµE①d
imma
p÷ .

Carves pectin of
whatever
ant .

gds
are
being

: ¥
-
 .

Intl
is
Tsf
If
these

between Sister Concerns ; the

ahead
be @
f- of will

MEI Atf
A a
④Iff
(
'

Shut pdt
.

Rs
-14£
.

OE
'

Components

.IE
CECDC @ noooo

a ¥

most
DM 440 CECDC
Comp
:
.

!.÷÷f⇒.
" "

2k€
-

cvECTFwanjEcFhas-C@nnriE.s
.EE?coIIItE::tm..oo@mP:d@p-oTursgp

:x¥T¥f←FFEE
CE#
.

Capacity
is

VE Dm : 620

500,000C DL :
115

÷
11
000pm
.

:
,
=
Irs :O

I
 r

I tfimomumtr
theory
.

DM :
440

fYgnf
Dh :
120

Vahds :
40

wharfage 30
:

V
amoeba ⑦
Imo, GEE,
⇐

FED
&
erisedman .
=
I so Tod @ 25L
TP =

30hL
i) P :
( That am is

Maximum to give to cease

willing
.
. .
.

's
is Rs 1490
.
.
.
.
.
ie .

APL

substitute cott .

product

Maid =
Rs .

II of
① Reduce :

External
ages
be
"

to aim
by
.

god

even
after importing
fiancee
Cfhipment chap ( 160 ) (10-1150)
,

Amp at Dirty )
-

Max m :
1330 -

4¥
 )
iii

2
II
: -

Inter nd Tf
@ cost .

Tax calf at

Alf

Ciii ) µ we

←
 '

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,,fg .co

←
g
m

:*
*
-

AE
.
-

f.
:c
Dirty Dirty )
cgtdf

set
cordial Engines
.

?aI
:*
Feng
.

10,080

:÷÷÷i
:

cart's
Aaf③
¥ .

::::÷÷E¥÷ cart
"

/
-
I

800
:L
19,000

on
VC :

q.gr FEET
.

-
h⑧go¥¥
vc
:

700£ cue .

ng
 B
If Tooo to
Div .
A Tnf u Div .

A to B
Benefit floss
to Dir
Benefit
.

# -

( Before the above

; tf .
$

Dir .
A

capacity;
had Spam 120007
which hour
Of Div .

B
pm
it
f .

to
Div A has
be )
.

will utilised .

Pu .

tooo pm
.

Extra
1 -

Rt
Addi Sales : Iooou Div .

=
B .

( boss )
@ Addttordn @
30001W ( sooo
:
u

.am
:

- extras
-

=R-5D§0
Total Couth :
6900,000
① Tox 3 of ⑦Tydings @ 401 .

e-
-

A
Netzfffdl
:

tisasooof etffddt :
Rs -309=00

apostle
)
.

Gost ran
away Net
Benefit ( Post text
=
( 420 ,
ooo -

30
,
ooo ) a Rs .

120,0701
 yrl
=
Co .
A :

pH Alc

7900
ooo
Gp I og
Eap .
:
.

up :
soooo

:9③
a
-0301 .

YEE Co. A :

plhnte

129000 Gp :

lap
:

1agoootossi2g@ehqIIlossofbn.bx
has

Et
YI CoA :
PK Ak .

re :
90,000
-02yd 1900×301=3000
 -

OE SI
USA
TT
1-

Indias Chinese

¥k
pkn.mg
:
¥30 If Indianans
(150,0004-1290006)
-129051 custom
.

duty

o¥Ei:i:÷
M
.
.

siege
¥ .
58 , 27,500 ( ¥30 -

¥20 )
Sp vc
9.81N
-

x
-

.
Addie Inland '

Taxes
'

pw.my 1)
am
 to China
Impact to Indian Impact
Mkt
.

market :
-
-
=

daring links ) : Benefit long

39000W ¥10
-
x

:B I 0950
pwrfnemch
.

:Rs4H090° a zoo

Pwr from local

¥0 Addl
:

X
zfgooo #
stand
u@
-
"

axis
Benefit

,oooFb@
9109500
fzgooou )
Rs
:
.

@ ¥30
gangs

⑦ Tax 3097230
660,000 # Chas
)
:

@ 341 .

- x 9.8
Net 6912,270 -

Says - 6468,00 loss

respray
251.1161700
says ) :
:

overall pastry
't 4851,00
Gotta )
(60*-4%00) loss
- 11,611272
 ABC Minus
Age
.

tapas MEILI EI
Din
Rane Emerald Dir .
Polishing

mail.IT#Tax3oY
::¥
in I :3
is
:
FEoot-k.Eooos.fr

so¥=
①
 -

D TE Lool .

of
tfuaot
A

1-

RE (J) PD
=

?
⑤aaYgL
=

⑦ roof ×

9oIoI@MPapproaeh.ca
trees
( )
Ism -1 sooo
Cvc

15000¥ 15000¥

: if
:

= 50¥
#

't

50¥ = I
f-
 ④ Jaane Statement
operating
.

In PD = Luke
.

Japan Div .

Uk Div

TP -

sooth Tp Mp
-
TP soo
.fr Me MP

3000
SP :

.
15000 9000 Sp 300

150 150
-0 VC -00C
360
①
mceoE¥E7
Center Cafe

25002500
12500650
① Fc 5000 500 -0 Ft
350 350

7500 1500 of 19W 2140

Nf
① tax 201 .

NY .
301 .

301 .

NPAI 6000¥ 12M¥ 1330 1498

too soo
xotg are ) toooo goo
Totally690,000¥ too ,oo¥ ✓
✓
÷ so

129000£ 2400£
③
Or Ziona Ltd . Gpntfssouoo

life
passionate
FEET
x -

-
Div .

Y -
Div
-
.

Ed
Eat
:

Ggooou
-

Repose Sg : so
wgginonotu
39,600W

. a .
:a÷
in
,

%
VMC 3
:

hemp '
- zs
:
pm
-

Close , ooo 39000)

56
t
Coal .

VC : 56
( 1689000 38009
× 60,000W

ag.at?==loo#oo
't

+38000-01335000 g -
Umc :

g
- 192900
( 270,000 't
38000 )
go
-0 FC :
120,000
-
x 39600
-

Nf
:
720,000
TC =
3009000 #

orem.is?oEooTo-
 -

Should be
Pngos€ it results
'

: as
accepted

in increase in Profit by Rs .

1610001
-

done
If
Jeunet TY is

from 7 to
=
X

→ Modified :

:(
=

mat I cost
FE
)
:
.

.
Lab :
t cost :
1.5
( Ihr @ if D

TE
 Cal .

g€P .

Pdnir
.

850004
A

1-

9xtdl
'

Spade

60,000W ou
H

Div .B ( 3960047
-111
1-

IIe
25000W 14600k

⑦
occupied
.

T€-
ctqp.at
@ )
)
Winn @ USD Minus -

@Cmp -
use
Mind
:

soooo ⑦ (15-132)%031
686,200
 Mind P "

36,00+686203960
u

1961,2039600k

pg
-

.
26080
I

be
As can seen from abang
Min M 26¥
-
-
-

& TP
of 2 Tis not acceptable .

Stile 7 P 26.8 is
feel
a
We
of
win win Situation both the
for depths

and the Company

as
a
whole ,
 •
#¥ - $

Ctfror ) .

Ctfu )
-
8 nternd
204 of old
'

=
Fi's
capacity

E⑧
=

I
①

Eat Dd .
Spare
I
=

40 ⑨
I

Steed
-

Demand Dinh
C§%q=DgfIrbTd kg
Div 'D )
Tp , @ coded

FI k
 : igloo
.

F is more

gating
than the min FP to be
changed;
.

F is the
Benefits

② F'
spdnhwd.SI

eextgtseooad Spa⑤
I
Demand Internal Di #n
by
⑧
Jebel TP = re

Tp .

pop ( f is the

Bengston )
③ '

F
¥
end :

Yo

1-

Gxtzdd
'
SPI
so ⑥

I
Ideal If = VC

I
May Cost
.

he
.

A
(s is the

An )
Perf
④ .
F 's

ipdn_bpacihTlo@iExt.dd

Space
= -

90 10
I

Int .
demand = 20

I
Jdedtp Ay
mint
-

Arrant Tp MP
by
-

F is the Benefit for .

 (

N'18 )
Oo Centurion C KAI Bn
:

Pop
-D → Carton Div .

( wood -

Pulp ) If

GReanins_Pep.DPurcheIy.fl0H@kep.S

fbsttot Rs . No

cost Olot
"

Rs @
HE
.
 ⑤
Pnepiziv .
-
-

Fey occupied .

" I
( Tyrod
prey pp =
ppp -210
.

Max W trot
fvbslikk
Carton
f
=
Div can
pay cost
.

pdt
.

ftjee) .

leaf
-

W Min IP No TP
s
range
:
Max

possible
.

=
 [

Puff 100,000kg
A
1-
69000 Apac
'

hat dd
40,00018
. .

=
=

A
10,000 Kgs
=

€ Spare >
arterial
old 's
)

Mint Vc
-

Mint P a 126

above legend to 126

Amply Rs .
is

Acceptable .
 ONE AB . Ltd .

'¥r ,
Dir

Ete
.

air
a
customers
Gyauty
if -100,000
units
Sf : 4000 .

⑦ VC : 27nF

¥ $
Total
big 36
" crores
Sales
of :

c-

sales
Ext Snl
161ms
(
.

Tonnes

¥50wib do / u
 ① Total Sales
by E 3600,09000
Div .

B
I

1-
Extend Internee
id Salis
Sales goons
.

000
1600,00

-2000,09000
,

÷
40001W ( sp ) .

I
- a-
32000W
of
NO .

u
59000

18000
=

unsafe units @ Spare

@ sacrificing
=

Cop
'

Mkt dd
.

(18,000×4000)
.

-
=

-3¥
Final
Aaalyfis

:
109007.36mm TP ) MP Tpa
vctoc VC

ie 2750
4000/2750-11250
.

i. e.

Ext art
(32000×270)
.

50K
=
Aku i

Rooms I
HE spore
72900,000 880,09000
7.su#w
1600,090001 -
④ Range few
pdncgaciy-gbiv.by
100,000 units

TT
1-
External
Dd -
Spano
I
=

32000 U

I
Jnkrnd dot

Sql
a
=
50,000
 50,0004
-1
1-
32000 u 18000 a

@ @
Vc
mpfvctoc
@ @
2750 4000
-
-

Rs .

880,09000 t 72900,00

a
Rs-16N,0O
50,000 u

Rs .

Min 3200£
-
-

Tp

63200 hood
Mf 4004
-

-
-
.
 !④ir
Its
AE APX#td

1-9=17
:

GEE DivX
bpfAwst=5* Di
:

77g
A
↳ C xD 17=211
camp
.

I
=
A
Gettin
e ' sofar
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VC a

VC =
30

Src -

- TPC "

IN

boxes
2
SIN a

Fc -
.

AIL -
c - 38
µ

T re ;son
Capacity Eatddi -

:*
, a
← a
:*
 Pdncapacityfx
500,000 U

1-
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dot 20,00
zag ooo

#\ad
249000
dd ! )
do
,

to be sacrificed from mkt .

TT
1-
Atty
Eats
269000 249000
 ① Profitability Statement of Apc Ltd .

Particulars Div X Div .

7 Total

a-
-
180
SP 50 r

⑦ VC 30 142

20 38
Centhpu
.

No 500,000 129000W
oyv
a .

Total Conti 100,09000 4569000

-8%8%0%4940,000 ) -

Net Couth 89,69000 4560,000

-0 FC 40,09000 2000,000

⑧ Usc isnnowred External fees

only for
.

Bisson
9560,000 I

If 49,602000 =
 St Ltd
Profitability of Apc .

Postulant Dir .
X Div .Y Total .

Jp :
50 180

① VC :
34 136

C incl Vsc
) 14440 -194kt 'D

-12 )
-

C 16 44
× No
of
.

zoo ooo 120,000

a -5 ,

Total Could .
4800,000 5280,000

① FC 2000,00
-4000,0W
3280,00 of
Rs 80,00
M
.

4089000
A
 Gl .

Mind Max ep in a
of
centric Scenario
puff
:

C Goal Congruence is
promoted
when internal
trayer are

between to
Mien Mff )

Min .

:
Tp
=
 's
X Capacity
pan
:

500,000 u

1-

External

-300,000W
Spare Capacity
ddi
200,000W
A

Internal Div B
from
.

'

old -

24,0000k
11

1-
200,000W 49000W
Spare Capacity Sacrifice of
'
-

Eatery dd
@

¥4
Guo VSD
. .

@
-

(34-4)=311 @ CST 4)
-
-

B. 60,09000 ⑦ @46_
Rs .

1849000
 Mint
:

7849000240,000W

Rs
3217
=
.

MAXI :

Mp - Vsc :C so .
a)
-

460
or

fubttpdt .
cost
= -

off 32.67 to 46
:

Raye =
 .

Es Rest
Easy
-

Consultant Customer

atoms
.

!
FEFmwas
Training

Services
Services

€:÷÷÷÷÷÷÷±±
Ruiz 2h50 14 .
.
.
-
 Issues
of gone
-

Congruence

D Eat Vendor → 1200

Training
.

Internally 14180
'

-10922K
←

Consultant
:

cord

II
Budget
I

180 Sees

§cremdRdiuF
A

aekmaumnphq.fi
Cos
for TD
.

policy

mi
:#
sina.o.DE
Weeds he be ma
.

d)
 -

④ A Costs
Budgeted

952
qposedon
consrmpl)
TT
1- P
Fixed Variable
I
=

( -180kt 2410k )
( 150,000W
-120K )
=

gfl 00 150,00
-
-

200T
pgudgeted Trig
seniors

750/5
=

28190-00
=
=

200T I

Based

Add
←
on
Rs .
14,050/5
=
=

A
Based on
Budget
=
 Based on
above Ccl :
TP well
be :

I
1-

=
consultant Customer -

firpot
14050×10 14050 NO

E
:

( Budget) 1405,00
1405,000£ =

⑦ ⑦ ④

nooooo
N
v
C Actu ) ( pox to )
=

(750×80)
1465,00
69000$
=
1USD06
÷
a

go
÷

100
18312.4 -

=
14801 =
-

=
 Total lap
3895,000
apt
-
-

of Training
-1
I
Cendant customer Unallocated
bppoI
tube,0A eat
µ65poo
880,0001

¥
( costar
rag

I
Agate
Dept
'

Training
=
OE
few
a.

1-

Div M .

Div . N

÷¥¥
I
←

E
¥ pot cost
External I
Mkt
@ Rs
.

3ft
@
Rs
44W
I

⑤
VC :
32

:
s
-
r
re
¥ Io
=
① Prodigy .

M
Div
.

⇒
Spare
#H
'

s ht dd
when Spare cap
.

min TP = VC
=

= Rs .

3¥ -

Max M =
mrysubstt
=
3M -

Range of TP =

35-28
④ Div .
M

⇐
poet x
.

Sacrificing =

Ae

MinTP Vc unit to
of
:

be
Tfl a)

I::÷
.

1-
cost
opportunity of
sacrificed Cx )
pdt
.

:* .
 Math mP/snbst cost
-

poet
. .

I
↳ 38
=

!
•

Tp Max TD
Mien > ;

it is a case IP Deadhead
of
Acc .

Div M will All X

pdt
-
.
.

to external market

N will
Div
pm from
.

a .

outside markt
tubs
titty
.
 what Should be the
→

Pd@
Price
Transfer ?

¥
II negotiated)
which is
Any

within the
range of
TP
"

TP
"

Min to Max
=

I
110
80
=

→
r
,

Tiff 100
HI 90

TP Tp
or
 Duel rate TP

-4
T
-

IFE TSE
TP
.

- 100 Rs TP = 90ps .

Est
.
.

fury price par .

A k
r
!
in

B. lot No lay the

company
@ male

IEE
level .

=
 Two .
Past TP

÷ dampen
Ht
.

ios
bogie Creamy of
FD
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An :

Gh
:
-

Dij
.

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Electric.IN tbeusehobtfir
5-000--3
-

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Sf
Vc ,
:

16
ftp://#- Sp .

czo

cmax#wy⇒
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aapfgp
=

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0kVafsf
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:

# hay
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operating
.
@
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I
Maximum Capacity

Tp MP market
± C -

pice,
A

TP =
24 -

C Not recommended to fell below

His
prices
 ID id

1- ⑨

TPE
18 TIP > 18
=
←

( TP Less than oregel told CTP more

thanIt )
⑨

sooo
I
TP#8
aeeiu
1-

HI
Shutdown
Eke HH
Mkt
Arteriole
Cesaro
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to )

Fu
µ .
( aft 6) .
45000
-

EEF
 TP

500GW Sp :

130

Tplsp
.

=18 -0 VE

EkIh-HHp
To
carport
:

VC 16
.

440
÷
.

o .
Voc :

Garth TPC
:
18
Total
:

:
-

Rs 190001 -
⇒
I
=
.

€÷×.÷
csoooxag or
 I

1-
Shuts HH Div !
If HH of
doors continues
- -

NP :
45000 NP :
120,000

in
Addi M -
-

B .

751001 -

Adde
pp
.
=

Woohoo
p.cn
psitpw
←

"
Recommend
II .
18 : HH should
continue
=

as it results in a increased M of
Rs 15pm .

or Rs .

75004 -
 shed
Iet
.

C
earns

HEE
,÷g

↳
a sooo
*
Low
BEE )
8500 U

grow

PFE .
-
-

As
.iq
He
/
not
coli
-

←
 .

)
iii ae .

of
Phage
of IP
agin ; )
mg
-

TT
1-
Minus Max TP
= =

Keke .
Div 'D I I
Based
A
( on

Since flea Divine's willingness of

HH divh to
fully occupied
;

pop
TP MP
BIG
- - - -
-
-

Csp
us
-

Coed :

TRaye=ofTP 130 -
(50-140)

K€0 =
B-
Eof
-
AE
goat
.

Div B
4¥20
.

= =
,

Lenses 5000 units Cameras

=

Gf )
-
C Maximum

VFaon@IdimpshEIaati-PDiv.A
& 140
Sf 410
: .

.
:

110
① VE
Vc :

150
Camp cost
:
.
-

Othman 30
: .

15
.

Fc :

- cost 120
.

M
:
15
find 50
:

I and -
 )i TP 120
Sf
=

T
I

Diva AHI
Current
fuel capacity pm fam
ruttish
=
of .

=p .

Hof

.RO/-
I

@ypifp.mP-ps.iaoJfpwf.ps
tgv.A.Bntiftpbset@Rs.isofSaepipsIY-FDrir.A

B will
will pin
.

not be le
=
happy
Tfy Wtf
cop
=
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ii
A

GTP 7120

I
> 120 :

JyTpspo_pwttfnanhbst.TT@B.tEof-GentinyaI.p

to
Diva :

Birds

1900
=
=

500×30
sorbet
Pmf
@
5000W .

@ Ceo -
)
I
- .
fp
: 410

It M¥30739
B.
-
.

p.LI#sa7YooTIoot
Too
 I

Continue Tpa 120

a-
Diva :

Div B
=
=

I. Tp
-

to Sp :
410

30×5000
-

①rc QVC
:

is

c :
10

units

.
120
-
-

f.
110
so
,
1- x sooo
I
+
-
550,001
Ps .

E
-

Mf : 600,0N

pm M :
.

150,000
÷ soon
Addict .
 F-
Range of A

Min TP Max A
← =

A
Mp
=
140
Div
ffully occupied )
'

gtyasr :

yp=mP=bof
patsy

fsst:
IN
By Hall band
on
willing
:

230

F Max
.

thin payable
170
Tuo
(410-150-30)
-

←
( km takes mid
Valve
) i.e .

170
 ⑤
Tf Div A has idk / spare
capacity
Pull
min m Vc
of
.

- -

MEIR MP :
140
of Thom

Ito

feet
mvidaae pot cost
. :
:

-
=

Max that
The Car :
230

pay