Answer the Following Question(s)using the Information Below

question 105

Multiple Choice

Answer the following question(s) using the information below.Beta Shoe Ltd.manufactures only one type of shoe and has two divisions, the Sole Division, and the Assembly Division.The Sole Division manufactures soles for the Assembly Division, which completes the shoe and sells it to retailers.The Sole Division "sells" soles to the Assembly Division.The market price for the Assembly Division to purchase a pair of soles is $20.(Ignore changes in inventory.) The per unit fixed costs are based on a production of 60,000 pairs of shoes.Sole's costs per pair of soles are:
Assembly's costs per completed pair of shoes are:

-Assume the transfer price for a pair of soles is 180% of total costs of the Sole Division and 40,000 of soles are produced and transferred to the Assembly Division.The Sole Division's operating income is

• A)$300,000.
• B)$320,000.
• C)$248,000.
• D)$440,000.
• E)$400,000.

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Definitions:

Arteriosclerosis

A condition marked by thickened and hardened arteries, often leading to restricted blood flow.

Thrombus

A blood clot that forms in a vessel and remains there, which can lead to vascular blockage and health complications.

Tumors

Abnormal masses of tissue that form when cells grow and divide more than they should or do not die when they should.

Ulcer

An open sore or lesion, typically found in the stomach or duodenal lining, often caused by infection with H. pylori bacteria or prolonged use of NSAIDs.