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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. P Company's main competitor in the United States sells laptops at an average 40% markup on cost. Which of the following would be an acceptable transfer price under the cost-plus method? $840 $600 $700 $800

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