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Worldwide Inc

Question 16

Multiple Choice

Worldwide Inc., is a multinational company with divisions around the world. Division A in the United States purchases a part from Division G in China. There is no outside market for the part. The part is sold for $12 and normally receives a 20% markup on cost. What is the transfer price using the resale price method?


A) $9.60
B) $10
C) $12
D) $14.40

Correct Answer:

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