Manifold, Inc

Multiple Choice

Manifold, Inc., is a multinational company with divisions around the world. Division X in the United States purchases a part from Division Z in China. There is no outside market for the part. The part is sold for $20 and normally receives a 35 percent markup on cost.
What is the transfer price using the resale price method? (Round the answer to two decimal places.)

A) $18.51
B) $14.81
C) $11.11
D) $10.91