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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 laptops at a price of $1,000. The subsidiary incurs operating costs, other than cost of goods sold, that average $200 per unit sold. The average operating profit margin earned by distributors of laptops in China is 10%.Which of the following would be an acceptable transfer price under the comparable profits method? $700 $600 $800 $840

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