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Planet Company Had the Following Historical Accounting Data Per Unit

Question 98

Multiple Choice

Planet Company had the following historical accounting data per unit:
 Planet Company had the following historical accounting data per unit:    The units are normally transferred internally from Division A to Division B.The units also may be sold externally for $220 per unit.The minimum profit level accepted by the company is a markup of 35%.There were no beginning or ending inventories. What would be the transfer price if Division A uses full cost plus markup?  A)  $216 B)  $198 C)  $136 D)  $129
The units are normally transferred internally from Division A to Division B.The units also may be sold externally for $220 per unit.The minimum profit level accepted by the company is a markup of 35%.There were no beginning or ending inventories.
What would be the transfer price if Division A uses full cost plus markup?


A) $216
B) $198
C) $136
D) $129

Correct Answer:

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