alleryStart learning →Resale price is Rs 1,200 and the distributor's gross margin is 20% of resale price. Transfer price?
ARs 1,440
BRs 1,000
CRs 1,180
DRs 960
Answer & Solution
Correct answer: D. Rs 960
The margin is 20 percent of 1,200, or 240, so the transfer price is 1,200 minus 240.
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