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:

Conditioned Response

A learned response to a previously neutral stimulus that has become conditioned through association.

Cat Food

Manufactured food specifically formulated to meet the nutritional needs of domestic cats.

Classical Conditioning

A conditioning method where a response initially triggered by a second stimulus comes to be elicited by the first stimulus alone after repeated pairings of the two stimuli.

CS and US

In classical conditioning, CS stands for Conditioned Stimulus, which is a previously neutral stimulus that, after becoming associated with the unconditioned stimulus (US), eventually comes to trigger a conditioned response.