Pautner Company Had the Following Historical Accounting Data Per Unit

Pautner 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) £90
C) £105
D) £144

Correct Answer:

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