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Cost of a transferred item is Rs 800 and the cost-plus markup is 25% on cost. Transfer price?

ARs 1,000
BRs 825
CRs 1,025
DRs 840
Answer & Solution
Correct answer: A. Rs 1,000
The markup is 25 percent of 800, or 200, so the price is 800 plus 200.
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