subsidiary, Berry utilized a ratio that has since been named in his honor: Berry Ratio = Gross Profit/Operating Expenses The Berry Ratio remains, to this day, a mainstay of transfer pricing analysis where a distributor serves as the tested party. Like most metrics that are based on data available in corporate accounts, the Berry ratio misses the value of the intangible costs needed to maintain the intangible property of a corporation. Since the non-routine income generated by intangibles is the main contributor to corporate earnings, and after taxes, to corporate profit the Berry ratio does not provide an adequate metric for the party that owns intangibles, but does show what routine functions captured in operating expenses should earn. References External links 1930 births 2007 deaths 20th-century American economists McGill University alumni University of Connecticut alumni University of Chicago alumni Princeton University faculty Brookings Institution people