ACCT 434 Week 5 Homework

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ACCT 434 Week 5 Homework

1.Question :Related to Problem 1, compute the average markup percentage for setting prices as a percentage of the full cost of the product.

 

Question 2.Question :Related to Problem 1, compute the average markup percentage for setting prices as a percentage of the variable cost of the product.

 

Question 3.Question :Related to Problem 1, compute the average markup percentage for setting prices as a percentage of the variable manufacturing costs.

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Question 4.Question :Related to Problem 2, compute the operating income for the olive oil division using a transfer price of $4.

 

Question 5.Question :Related to Problem 2, compute the operating income for the olive oil division using a transfer price of $2.14.

 

Question 6.Question :Related to Problem 2, what transfer price(s) do you recommend?  Compute the operating income for the olive oil division using your recommendation.

 

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