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please solve Part III P Company manufactures laptops in the United States at a production cost of $300 per unit and sells them to a

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Part III P Company manufactures laptops in the United States at a production cost of $300 per unit and sells them to a wholly owned sales subsidiary in China. The subsidiary sells the laptops at a price of $500. Required: a. Other distributors of laptops in China normally earn a gross profit equal to 20% of selling price. How much would be an acceptable transfer price under the resale price method? b. P Company's main competitor in the United States sells laptops at an average 40% markup on cost. How much would be an acceptable transfer price under the cost-plus method? c. The subsidiary incurs operating costs, other than cost of goods sold, that average $100 per unit sold. The average operating profit margin earned by distributors of laptops in China is 10%. How much would be an acceptable transfer price under the comparable profits method? Part III P Company manufactures laptops in the United States at a production cost of $300 per unit and sells them to a wholly owned sales subsidiary in China. The subsidiary sells the laptops at a price of $500. Required: a. Other distributors of laptops in China normally earn a gross profit equal to 20% of selling price. How much would be an acceptable transfer price under the resale price method? b. P Company's main competitor in the United States sells laptops at an average 40% markup on cost. How much would be an acceptable transfer price under the cost-plus method? c. The subsidiary incurs operating costs, other than cost of goods sold, that average $100 per unit sold. The average operating profit margin earned by distributors of laptops in China is 10%. How much would be an acceptable transfer price under the comparable profits method

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