PAPT at Chapterg Problem Set Aladdin Company manufactures commercial refirigerators in the United States at a production cost of \$1000 per unit and sells them to uncontroilled distributers in the United States and a wholly owned sales subsidiary in Canada. Aladdin's U.S. distributors buy the refirgerators at a cost of \$1500 and scll the refirigerators to restaurants at a price of \$2,000. Aladdin's' Canadian subsidiary sells the refrigerators at a price of \$2200. Other distributors of similar refirgerators to restaurants in Canada can earn a gross profit (i.e., markup) of 20\% of selling price, Aladdin's main U.S. competitor sells refrigerators at an average 40% markup on cost. Aladdin's Canadian subsidiary incurs operating costs (other than COGS), that average $500 per refirgerator sold. The average operating prolit margin earned by Canadian refirgerator distributors is 15% (of sales). 5. Which of the following would be an acceptable transfer price under the resale price method? Show your calculations a. $1370 b. $1,400 c. $1,500 d. $1,760 6. Which of the following would be an acceptable transfer price under the cost-plus method? Show your calculations a. $1370 b. $1,400 c. $1,500 d. $1,760 7. Which of the following would be an acceptable transfer price under the comparable pmifits method? Show your calculations a. \$1,370 b. $1,400 c. $1,500 $1,760 8. Which of the following would be an acceptable transfer price under the comparable uncontrolled price method? Show your calculations a. $1,370 b. $1,400 c. $1,500 d. $1,760