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Compaq Asia sales to Compaq U.S. during 1991 and 1992 were
101.5 and 88.1 percent of Compaq U.S. standard cost to produce
the PCA's, respectively. On an aggregate basis, Compaq Asia sold
PCA's to Compaq U.S. at an average transfer price that was equal
to 93.9 percent of Compaq U.S. standard costs for 1991 and 1992.
The following table breaks down the PCA's into separate
categories and compares Compaq Asia prices to Compaq U.S.
standard cost during 1991 and 1992:
Power Memory Backplane/
Supplies Processors Boards Video BoardsOther Total
Compaq Asia PCA 2,359,106 896,440 30,191 269,841 1,752,507 5,308,085
shipments (units)
Compaq Asia PCA$238,117,676$354,286,957$5,570,843$35,892,421$85,405,509$719,273,406
shipments ($)
Compaq US std. cost$283,325,817$350,280,911$5,456,326$36,505,921$90,134,571$765,703,546
Compaq Asia price 84.0% 101.1% 102.1% 98.3% 94.8% 93.9%
as % of Compaq US
std. cost
Unrelated Subcontractors
In addition to making purchases from Compaq Asia, Compaq
U.S. also purchased PCA's from unrelated subcontractors during
1990 to 1993 and had used unrelated subcontractors as a source of
PCA's since 1983. Compaq U.S. maintained this ongoing
relationship with its unrelated subcontractors so it would be
able to respond to market demands when necessary, bringing
products to market as quickly as possible. Compaq U.S. also used
the prices that were paid to the unrelated subcontractors as a
benchmark for its standard manufacturing costs.
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