Whitney Company treats each division as a profit center and expects a 20 percent profit on its total production costs. Division A produces a part that it sells externally for $19.00. It also supplies this part to other internal divisions. Its production cost for the part is $13.70. What should be the transfer price for the part using the cost-plus approach?
A) $16.35
B) $16.44
C) $19.00
D) $22.80
B
Business
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