Hasslehoff Inc

Multiple Choice

Hasslehoff Inc., is a multinational company with divisions around the world.Division A in the United States purchases a part from Division G in Canada.The part can be purchased externally for $7 each.Transportation costs amount to $1 and the commission of $.50 will not need to be paid. What is the transfer price using the comparable uncontrolled price method?

A) $8.50
B) $8
C) $7.50
D) $7