transfer pricing 708974

University of the South Pacific Faculty of Business and Economics School of Accounting and Finance AF201 Managerial Accounting Assignment 2 Weighting: The total mark for this assignment is 20 and is worth 5% of your total assessment. Due date: Friday 17th October, at 4.00 PM sharp in Rm.: 092 001 – AusAid Lecture Hall. ALL ASSIGNMENTS HANDED IN AFTER THIS TIME WILL BE REGARDED AS LATE ASSIGNMENTS. Introduction This assignment will assess your problem solving ability. As a future management accountant it is essential to have a problem solving ability and effectively make appropriate decisions to create value for shareholders and customers. Furthermore, this assignment addresses learning objective (6) as depicted on the course outline. Instructions: 1. Your assignment MUST be word processed. Hand written assignments will NOT be accepted. 2. The maximum page to write the assignment is 3 pages. 3. Please upload the soft copy of the assignment via turn it in and the hard copy must be handed in Rm.: 092 001 – AusAid Lecture Hall 4. Chapter Reference: Chapter 12 of the textbook 5. Ensure that your name, ID No., tutor’s name and tutorial day and time are stated clearly on the cover page, which can be downloaded from AF201 moodle page. 6. A penalty of 10% will be deducted each day or part thereof that the assignment is late. 7. Plagiarized assignment will be awarded a Zero (0) mark. Galatia Products, Inc., has just purchased a small company that specializes in the manufacturing of electronic tuners that are used as a component part of TV sets. Galatia Products, Inc. is a decentralized company, and it will treat the newly acquired company as an autonomous division with full profit responsibility. The new division, called the Tuner Division, has the following revenue and costs associated with each tuner that it manufactures and sells: Selling price $20 Expenses: Variable $11 Fixed (based on a capacity of 100,000 tuners per year) …