Use the following information to calculate the sales price of a boat under both gaap and for internal decision purposes:

number of boats to be sold 500
upstream costs $5,000,000
direct materials per boat $50,000
direct labor per boat $30,000
overhead per boat $ 20,000
downstream costs $2,000,000
(1). assume the company wants to sell each boat for 20% more than the cost to produce the boat. which of the following would be the sales price under gaap and for internal decision purposes?

gaap internal decision
(a) $120,000 $136,800
(b) $ 136,800 $136,800
(c) $ 120,000 $114,000
(d)) $136,800 $ 114,000

Double corporation acquired all of the common stock of simple company for

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