If a GSM operator based in Lagos supplies recharge cards to its branch in Akure, the head office can charge the goods at?

Answer Details

If a GSM operator based in Lagos supplies recharge cards to its branch in Akure, the head office can charge the goods at the company price. The company price is the price at which the head office sells the recharge cards to its branch in Akure. The company price is usually lower than the selling price, which is the price at which the branch in Akure sells the recharge cards to the final customers. The difference between the company price and the selling price is the profit margin for the branch in Akure. The Akure price is not relevant in this scenario because it is not a standard price that is set by the head office or the company. It could refer to the price at which the branch in Akure sells the recharge cards, but this is not useful information for the head office when it comes to charging the goods. Similarly, the Lagos price is not relevant because it could refer to the price at which the head office purchases the recharge cards from the supplier or manufacturer, but this is not useful information for charging the goods to the branch in Akure.