Question 5 Not complete. Marked out of 12.50 PFlag question Transfer pricing Mogi Corp. manufactures one primary product, which is processed through two divisions (P and R). Costs for each division are: PR Variable cost per gallon $3 $15) Fixed cost per gallon 2 12 *Based on production of 25,000 and 40,000 gallons for P and R respectively. P Division produces 25,000 gallons per month. R Division uses 40,000 gallons per month; of that, 25,000 gallons are purchased internally and 15,000 are through R Division, a gallon of final product can be sold for $55. a. What would be P's transfer price to R Division if the price is set at 180 percent of variable cost? $ b. What would be P's transfer price to R Division if the price is set at 130 percent of full cost? s c. What would be P's transfer price to R Division if the price is set at market value? $ d. What is Mogi Corp.'s operating profit if all 40,000 gallon of final product can be sold for $55 per gallon? $