Use the Following Information for the Next 3 Questions

question 80

Multiple Choice

Use the following information for the next 3 questions.
Division X sells organic high-gluten flour to Division Y. Division X incurs costs of $0.375 per pound of flour. Division Y makes loaves of bread that sell for $2.50 each. Division Y incurs costs of $1.25 per loaf, excluding the cost of the flour. Each loaf of bread uses one-half pound of flour.
-What is the operating income per loaf for Division Y if the transfer price is set at $0.625 per pound for flour?

• A) $0.6250
• B) $0.9375
• C) $1.2500
• D) $0.8750

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Definitions:

Physical Appearance

The external physical characteristics of an individual, including features, body shape, clothing, and other visible attributes.

Peripheral Route

A method of persuasion that relies on superficial cues or associative reasoning, rather than systematic thinking about the content of a message.

Central Route

A method of persuasion that involves deeply processing the content of a message, considering its arguments and evidence.

Primacy Effect

The tendency to remember information presented at the beginning of a list or sequence more efficiently than information presented later.