Gunnison Furniture had the following historical accounting data, per hundred board feet, concerning one of its products: The shelving is normally transferred internally from the Cutting Division to the Finishing Division. It also may be
Sold externally for $110 per hundred board feet. The minimum profit level accepted by the company is a markup of 20 percent.
If the variable manufacturing cost transfer price method is used without a fixed fee, Gunnison Furniture's transfer price will be
A) $56
B) $84
C) $64
D) $68

Question

Gunnison Furniture had the following historical accounting data, per hundred board feet, concerning one of its products:  The shelving is normally transferred internally from the Cutting Division to the Finishing Division. It also may be
Sold externally for $110 per hundred board feet. The minimum profit level accepted by the company is a markup of 20 percent.
If the variable manufacturing cost transfer price method is used without a fixed fee, Gunnison Furniture's transfer price will be
A) $56 
B) $84 
C) $64 
D) $68

Quizplus · Accepted Answer

The Answer of Gunnison Furniture had the following historical accounting data, per hundred board feet, concerning one of its products:  The shelving is normally transferred internally from the Cutting Division to the Finishing Division. It also may be
Sold externally for $110 per hundred board feet. The minimum profit level accepted by the company is a markup of 20 percent.
If the variable manufacturing cost transfer price method is used without a fixed fee, Gunnison Furniture's transfer price will be
A) $56 
B) $84 
C) $64 
D) $68

Gunnison Furniture Had the Following Historical Accounting Data, Per Hundred