Ruter Company Had the Following Historical Accounting Data Per Unit

question 73

Multiple Choice

Ruter Company had the following historical accounting data per unit: The units are normally transferred internally from Division X to Division Y.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 was no beginning or ending inventories.
Suppose Division X uses full cost plus markup.What would be the transfer price?
$\begin{array}{lr}\text { Direct materials } & \$ 70 \\\text { Direct labour } & 40 \\\text { Variable overhead } & 25 \\\text { Fixed overhead } & 34 \\\text { Variable selling expenses } & 55 \\\text { Fixed selling expenses } & 19\end{array}$

• A)$129.00
• B)$136.50
• C)$167.00
• D)$219.70

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Communication designed to convey unfavorable, disappointing, or adverse information to the recipient in a sensitive manner.

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