Question

In: Accounting

Panther Company had the following historical accounting data per unit: Direct materials $60 Direct labor 30...

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.

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