Manifold, Inc

question 62

Multiple Choice

Manifold, Inc., is a multinational company with divisions around the world. Division X in the United States purchases a part from Division Z in China. There is no outside market for the part. The part is sold for $20 and normally receives a 35 percent markup on cost.
What is the transfer price using the resale price method? (Round the answer to two decimal places.)

• A)$18.51
• B)$14.81
• C)$11.11
• D)$10.91

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Definitions:

American Stock Market

Refers to the financial markets in the United States where stocks, bonds, and other securities are bought and sold, including major exchanges like the NYSE and NASDAQ.

Annual Real Return

The measure of profit or loss on an investment over a one-year period, adjusted for inflation.

Stock Prices

the cost per share of owning a portion of a company, which fluctuates based on investor demand and market conditions.

Interest Rates

Interest rates are the cost of borrowing money or the reward for saving, typically expressed as a percentage of the principal amount.