Panther 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 percent. There were no beginning or ending inventories.
If variable manufacturing costs without a fixed fee are used as the transfer price, Division A's transfer price would be
A) $60.
B) $105.
C) $90.
D) $144.

Question

Panther 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 percent. There were no beginning or ending inventories.
If variable manufacturing costs without a fixed fee are used as the transfer price, Division A's transfer price would be
A) $60. 
B) $105. 
C) $90. 
D) $144.

Quizplus · Accepted Answer

The Answer of Panther 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 percent. There were no beginning or ending inventories.
If variable manufacturing costs without a fixed fee are used as the transfer price, Division A's transfer price would be
A) $60. 
B) $105. 
C) $90. 
D) $144.

Panther Company Had the Following Historical Accounting Data Per Unit