Panther Company had the following historical accounting data per unit: $\begin{array}{lr}
\text { Direct materials } & \$ 60 \
\text { Direct labor } & 30 \
\text { Variable overhead } & 15 \
\text { Fixed overhead } & 24 \
\text { Variable selling expenses } & 45 \
\text { Fixed selling expenses } & 9
\end{array}$ 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)minimum of $120.00.
B)minimum of $153.00.
C)maximum of $198.90.
D)maximum of $210.00.

Question

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The Answer of Panther Company had the following historical accounting data per unit: $\begin{array}{lr}
\text { Direct materials } & \$ 60 \
\text { Direct labor } & 30 \
\text { Variable overhead } & 15 \
\text { Fixed overhead } & 24 \
\text { Variable selling expenses } & 45 \
\text { Fixed selling expenses } & 9
\end{array}$ 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)minimum of $120.00.
B)minimum of $153.00.
C)maximum of $198.90.
D)maximum of $210.00.

Panther Company Had the Following Historical Accounting Data Per Unit