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Worldwide Inc., is a multinational company with divisions around the world. Division A in the United States purchases a partCognitive limitations mean it is difficult for central managers to be fully knowledgeable about all products and markets. Tru

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Answer #1

Calculation of transfer price using the comparable uncontrolled price method :

Particulars Amount($)
Market price $7.00
Add: Frieght and insurance $1.00
Less: Commissions ($0.50)
Transfer price $7.50

Therefore, Option $7.50 is correct.

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