Audubon Company manufactures its product in the U.S. and sells to uncontrolled distributors in the U.S., who sells to their customers for $850 and to a wholly-owned subsidiary in Poland, who sells to their customers for $915. The Polish distributor has additional operating costs of $110.

Other data:

Audubon's production cost = $620

Other Polish distributors = gross profit 14% of selling price; average operating profit margin = 6%

U.S. competitor sells for 35% mark-up on cost.

Compute the following transfer prices, showing and labeling all computations.

1. Cost + method

2. Comparable profits method

3. Resale method

4. Comparable uncontrolled price method