I think the answer is 5.88, but that's in between 2 of the answer choices. Please check and show steps to the correct answer if incorrect.

I think this is the correct answer, please check and show steps to correct answer if incorrect.

12. Edmonco Company produced and sold 46,000 units of a single product last year, with the following results: Sales Revenue $ 1,370,000 Manufacturing costs: Variable 572,000 Fixed 290,000 Selling costs: Variable 42,000 Fixed 64,000 Administrative costs: Variable 186,000 Fixed 119,000 Edmonco's operating leverage factor was: a) 4. b) 6. c) 5. d) 8. e) 7. 36. Overton Company uses cost-based transfer pricing. Its Food Processing Division has a standard variable cost of $9.60 per case and allocated fixed overhead of $2.80. The Processing Division, which has excess capacity, sells its output to external customers for $13.10 per case. If Overton uses full (or absorption) cost as its base, the transfer price charged to its Retail Division should be: b) $15.90. c) $13.10. ????? d) $12.40. e) $9.60 plus a markup. f) negotiated between the managers of the Processing and Retail Divisions. Transfer price = variable production cost + (selling price - (variable production + variable selling)) = $9.60 + ($13.10 - (9.60 +