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Worldwide Inc., is a multinational company with divisions around the world. Division A in the...

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Accounting

Worldwide Inc., is a multinational company with divisions around the world. Division A in the United States purchases a part from Division G in China. There is no outside market for the part because it is used to manufacture another product. The manufacturing cost for the part is $5. Transportation is $1 and commissions are $.5 but do not need to be paid. What is the transfer price using the cost-plus method?

a.$5.50

b.$6.50

c.$5

d.$6

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