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Competitive Advantage and Transfer Pricing

SOURCING FROM INDEPENDENT SUPPLIERS. INDEPENDENT MANUFACTURINGPrice$2.00Materials Costs1.20Labor Costs.20Fixed Costs.40CM ($)$ .60Total Revenue$2 millionAnnual Unit Sales 1 millionAnnual Pretax Profit$200,000. ALPHA PARTS, INC.Price$ .30Variable Costs.05Fixed Costs

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Competitive Advantage and Transfer Pricing

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    1. Competitive Advantage and Transfer Pricing Gerald Smith, D.B.A.

    2. SOURCING FROM INDEPENDENT SUPPLIERS INDEPENDENT MANUFACTURING Price $2.00 Materials Costs 1.20 Labor Costs .20 Fixed Costs .40 CM ($) $ .60 Total Revenue $2 million Annual Unit Sales 1 million Annual Pretax Profit $200,000

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