Answer:
$216
Explanation:
Calculation to determine What would be the transfer price if Division A uses full cost plus markup
Using this formula
Transfer price = Direct Material + Direct Labor + Variable Overhead + Fixed Overhead
Let plug in the formula
Transfer price = (70 + 40 + 20 + 30)+(70 + 40 + 20 + 30*35)
Transfer price = 160+(160*35%)
Transfer price = 160 + 56
Transfer price = 216
Therefore What would be the transfer price if Division A uses full cost plus markup is $216