Pautner 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 $210 per unit. The minimum profit level accepted by the company is a markup of 30%. There were no beginning or ending inventories.
What would be the transfer price if Division X uses full cost plus markup?

Question

Pautner 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 $210 per unit. The minimum profit level accepted by the company is a markup of 30%. There were no beginning or ending inventories.
What would be the transfer price if Division X uses full cost plus markup?

Quizplus · Accepted Answer

The Answer of Pautner 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 $210 per unit. The minimum profit level accepted by the company is a markup of 30%. There were no beginning or ending inventories.
What would be the transfer price if Division X uses full cost plus markup?

Pautner Company Had the Following Historical Accounting Data Per Unit