1.The methods of transfer prices are as follows:-
Traditional transaction methods:
Transactional profit methods:
2. Recalculation of profits assuming the Italian manager's proposal:-
Omega Inc. | |||
Profits in Euro by Offices | |||
Current Year | |||
Germany | France | Italy | |
No. of Investment Advisors | 14 | 11 | 9 |
Revenue | 16,000,000 | 14,000,000 | 20,000,000 |
Operating Expenses | 12,670,000 | 11,200,000 | 16,300,000 |
Central Services (Total 6,000,000) | 2,470,588 | 1,941,177 | 1,588,235 |
Profit (Total 3,830,000) | 859,412 | 858,823 | 2,111,765 |
3. The Italian manager's proposal is not fair because the Headquarter in Geneva is providing IT, Marketing, Accounting and Payroll Services. Only Payroll service is dependent on the number of advisors in each office.
4. The Italian manager is concerned because the revenue of Italian office is the most, with the least number of investment advisors.
Omega is an investment advisory firm specializing in pensions for wealthy people located in Geneva. The...
Case 5 Twin Falls Community Hospital (Capital Investment Analysis) Twin Falls Community Hospital is a 250-bed, not-for-profit hospital located in the city of Twin Falls, the largest city in Idaho’s Magic Valley region and the seventh largest in the state. The hospital was founded in 1972 and today is acknowledged to be one of the leading healthcare providers in the area. Twin Falls’ management is currently evaluating a proposed ambulatory (outpatient) surgery center. Over 80 percent of all outpatient surgery...
write up an essay on the problems in budgeting derived from the articles (i do Upvote the answers ) Why Budgeting Kills Your Company HBSWK Pub. Date: Aug '1 1, 2003 Why doesn't the budget process work? Read what experts say about not only changing your budgeting process, but whether your company should dispense with budgets entirely. by Loren Gary The average billion-dollar company spends as many as 25,000 person-days per year putting together the budget. If this all paid...
Could someone take notes for me with explantation with these
paragraph. Thank you inadvance.
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Read about Cokes strategy in Africa in the article below and discuss the ethics of selling soft drinks to very poor people. Is this an issue that a company like Coke should consider? Africa: Coke's Last Frontier Sales are flat in developed countries. For Coke to keep growing, Africa is it By Duane Stanford Piles of trash are burning outside the Mamakamau Shop in Uthiru, a suburb of Nairobi, Kenya. Sewage trickles by in an open trench. Across the street,...
Discussion questions
1. What is the link between internal marketing and service
quality in the airline industry?
2. What internal marketing programmes could British Airways
put into place to avoid further internal unrest? What potential is
there to extend auch programmes to external partners?
3. What challenges may BA face in implementing an internal
marketing programme to deliver value to its customers?
(1981)ǐn the context ofbank marketing ths theme has bon pururd by other, nashri oriented towards the identification of...