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P Company manufactures laptops in the United States at a production cost of $600 per unit and sells them to a wholly owned sales subsidiary

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P Company manufactures laptops in the United States at a production cost of $600 per unit and sells them to a wholly owned sales subsidiary in China. The subsidiary sells the lap tops at a price of $1.000 Other distributors of laptops in China normally earn a gross profit equal to 20% of selling price. Which of the following would be an acceptable transfer price under the resale price method? - $800 $600 $700 $820

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