Use the Following Information for the Next 3 Questions

question 13

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 for the entire organization if 100,000 loaves of bread are sold?

• A) $93,750
• B) $125,000
• C) $106,250
• D) $87,500

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Definitions:

Deadbeat Dad

A derogatory term for a father who neglects his child support obligations and parental responsibilities.

Child Support

Monetary payments by the noncustodial parent to the custodial parent to help pay for child-rearing expenses.

Breadwinner Father

A traditional role where the father is the primary provider for the financial needs of the family.

Economic Responsibility

involves the obligation to make decisions and act in ways that positively affect the economic well-being of society, including responsible spending, investing, and resource allocation.