Figure 20-8
Pautner Company Had the Following Historical Accounting Data

Multiple Choice

Figure 20-8
Pautner Company had the following historical accounting data per unit: $\begin{array}{lr}\text { Direct materials } & £ 60 \\\text { Direct labour } & 30 \\\text { Variable overhead } & 15 \\\text { Fixed overhead } & 24 \\\text { Variable selling expenses } & 45 \\\text { Fixed selling expenses } & 9\end{array}$ The units are normally transferred internally from Division A to Division B. The units also may be sold externally for £210 per unit. The minimum profit level accepted by the company is a markup of 30 per cent. There were no beginning or ending inventories.
-Refer to Figure 20-8. What would be the transfer price if Division X uses full cost plus markup?

A) £167.70
B) £198.90
C) £136.50
D) £129.00