My Math Forum

My Math Forum (http://mymathforum.com/math-forums.php)
-   Economics (http://mymathforum.com/economics/)
-   -   Unrealised profit (http://mymathforum.com/economics/53406-unrealised-profit.html)

hoyy1kolko April 30th, 2015 09:02 PM

Unrealised profit
 
During the year ended 31st December 2009, Grey Ltd has sold goods
to Blue plc for £65,000 (transfer price). The standard gross profit % charged on inter-company sales is 30%.

50% of these goods have since been sold by Blue plc to external customers.

I used to calculate like that , 65000 x 0.3 x 0.5 = 9750
but the marking scheme is given the unrealised profit is 13000 . I just wonder how it is calculate or maybe i misunderstand the meaning of transfer price ? Can anyone explain to me step by step . Thank you.


All times are GMT -8. The time now is 02:55 AM.

Copyright © 2019 My Math Forum. All rights reserved.