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...
Roget bought AB Thorsten in 1972. During the first four years of Roget’s ownership, Thorsten’s sales had had serious trouble with sales. ...
In September of 1980, Ekstrom suggest Thorsten to build up a factory in Sweden for the manufacture of XL-4, a chemical helps large paper mills in savings in material handling, storage costs and drying time shortening. ... Ekstrom believed that AB Thorsten would be able to develop a market of 400 tons annually in Sweden. ... Were Thorsten force to buy XL-4 from Belgium, the price that they would pay might excess the estimated cost they would have if the plant were built. ... Since Ekstrom was rewarded based on the profits of his divisions, he might concentrate his efforts on products that add more to Thorsten’s reported profit and forgo the potential market for XL-4. ... Thorsten should be offered a preferred price when it buys XL-4 from Belgian plant. ...
Suggested formula for the XL-4 price that would be sold to Thorsten:
Transfer price = variable cost + appropriate mark up – adjustments.
Approximate Word count = 780
Approximate Pages = 3.1
(250 words per page double spaced)
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