Answer the Following Question(s)using the Information Below

question 175

Multiple Choice

Answer the following question(s) using the information below:
Greenlawn Ltd.has two divisions, Distribution and Production.The company's primary product is fertilizer.Each division's costs are provided below:
The Distribution Division has been operating at a capacity of 4,000,000 kilograms a week and usually purchases 2,000,000 kilograms from the Production Division and 2,000,000 kilograms from other suppliers at $0.45 per kilogram.
-Assume 100,000 kilograms are transferred from the Production Division to the Distribution Division for a transfer price of $0.40 per kilogram.The Distribution Division sells the 100,000 kilograms at a price of $0.55 each to customers.What is the company's operating income?

• A)$10,000
• B)$15,000
• C)$20,000
• D)$25,000
• E)$0

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Definitions:

Naïve Scientist

A concept in social psychology suggesting that individuals try to understand the social world using attribution processes similar to how a scientist would, making inferences and hypotheses based on observations.

Social Cognition

Cognitive processes and structures that influence and are influenced by social behaviour.

Social Behaviour

Actions and reactions exhibited by individuals within a social context, usually governed by societal norms.

Self-Image

An individual's mental concept of themselves, incorporating both how they see themselves and how they believe they are perceived by others.