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Jason has two profit centres, Y and Z, both working at full capacity. 30% of Y's production is transferred to Z, with the remaining 70% being sold on the external market for $8.4 million. Z's entire output is sold externally for $8 million.
Y's annual production costs are $5 million, with those of Z are $2.75 million (which excludes purchases from Y).
Jason operates a transfer pricing policy of market value.
What is the profit (in millions) earned by each division, Y and Z, using the above transfer pricing policy (to 2 decimal places)? Y = $________million Z = $________million |