Bambi Company manufactures fast-baking ovens in the United States at a production cost of $500 per unit and sells them to uncontrolled distributers in the United States and a wholly owned sales subsidiary in Canada. Bambis U.S. distributors sell the ovens to restaurants at a price of $1,000 and its Canadian subsidiary sells the ovens at a price of $1,100. Other distributors of similar ovens to restaurants in Canada can earn a gross profit (i.e., markup) of 25% of selling price. Bambis main U.S. competitor sells ovens at an average 50% markup on cost. Bambis Canadian subsidiary incurs operating costs (other than COGS), that average $250 per oven sold. The average operating profit margin earned by Canadian oven distributors is 5% (of sales).

1. Which of the following would be an acceptable transfer price under the resale price method? Show your calculations
   1. $700
   2. $750
   3. $795
   4. $825
2. Which of the following would be an acceptable transfer price under the cost-plus method? Show your calculations
   1. $700
   2. $750
   3. $795
   4. $825
3. Which of the following would be an acceptable transfer price under the comparable profits method? Show your calculations
   1. $700
   2. $750
   3. $795
   4. $825