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Required: a. Compute the operating income for the Palmolive Oil Division using a transfer price of $4. b. Compute the operating income for the

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Required: a. Compute the operating income for the Palmolive Oil Division using a transfer price of $4. b. Compute the operating income for the Palmolive Oil Division using a transfer price of $2.14. c. What transfer price(s) do you recommend? Compute the operating income for the Palmolive Oil Division using your recommendation. 4)Alex Miller, Inc., sells car batteries to service stations for an average of $30 each. The variable cost of each battery is $20 and monthly fixed manufacturing costs total $10,000. Other monthly fixed costs of the company total $8,000. (10 MARKS) Required: a. What is the breakeven point in batteries? b. What is the margin of safety, assuming sales total $60,000? What is the breakeven level in batteries, assuming variable costs increase by 20%? d. What is the breakeven level in batteries, assuming the selling price goes up by 10%, fixed manufacturing costs dedine by 10%, and other fixed costs decline by $100? 5) Flyers Inc. had the following activities during 2015 Direct materials: Beginning inventory $22,000 Purchases 61,600 Ending inventory 10,800 Direct manufacturing labor 18,000 Manufacturing overhead 11,500 Beginning work-in-process inventory 1,000 Ending work-in-process inventory 3,500 Beginning finished goods inventory 25,000 Ending finished goods inventory 19,000 Required: a. What is the cost of direct materials used during 2015? b. What is cost of goods manufactured for 2015? c. What is cost of goods sold for 2015? d. What amount of prime costs was added to production during 2015? e. What amount of conversion costs was added to production during 2015? (10 MARKS)

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