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Business, 16.11.2019 00:31, micahsocool23
Item 10 item 10 babcock company manufactures fast-baking ovens in the united states at a production cost of $500 per unit and sells them to uncontrolled distributors in the united states and a wholly owned sales subsidiary in canada. babcock’s u. s. distributors sell the ovens to restaurants at a price of $1,000, and its canadian subsidiary sells the ovens at a price of $1,100. other distributors of ovens to restaurants in canada normally earn a gross profit equal to 25 percent of selling price. babcock’s main competitor in the united states sells fast-baking ovens at an average 50 percent markup on cost. babcock’s canadian sales subsidiary incurs operating costs, other than cost of goods sold, that average $250 per oven sold. the average operating profit margin earned by canadian distributors of fast-baking ovens is 5 percent. which of the following would be an acceptable transfer price under the comparable profits method?
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Business, 22.06.2019 05:00, and7393
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Business, 22.06.2019 10:30, salvadorjr1226p4zkp3
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Item 10 item 10 babcock company manufactures fast-baking ovens in the united states at a production...
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