In: Accounting
Panther Company had the following historical accounting data per unit:
Direct materials | $60 |
Direct labor | 30 |
Variable overhead | 15 |
Fixed overhead | 24 |
Variable selling expenses | 45 |
Fixed selling expenses | 9 |
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 percent. There were no beginning or ending inventories.
If the negotiated price is used, Division A's transfer price should
be a
a.maximum of $198.90.
b.maximum of $210.00.
c.minimum of $120.00.
d.minimum of $153.00.