alleryStart learning →Intercompany sales were 100,000 with total profit 20,000. Unsold stock is 40,000. What is PURP?
A20,000
B4,000
C12,000
D8,000
Answer & Solution
Correct answer: D. 8,000
PURP is intercompany profit times unsold stock over total intercompany sales: 20,000 x 40,000 / 100,000 = 8,000.
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