When goods are sent to branch at cost plus mark up; it means that the branch should sell at ______?

A. Price above or below the stipulated price
B. Any price but not below the transfer price
C. Cost price
D. A price that is equal to the mark-up

Correct Answer:

Option A – Price above or below the stipulated price

Explanation

Cost plus mark up is a pricing strategy in which the selling price is determined by adding a specific amount mark up to a product unit cost