Answer the Following Question(s)using the Information Below

question 157

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:

-If the Assembly Division sells 100,000 pairs of shoes at a price of $60 a pair to customers, what is the company's operating income?

• A)$4,400,000
• B)$4,020,000
• C)$3,900,000
• D)$2,600,000
• E)$2,400,000

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Definitions:

Oxytocin

A hormone and neurotransmitter involved in childbirth and breastfeeding, also known as the "love hormone" for its role in social bonding.

Epinephrine

A hormone and neurotransmitter also known as adrenaline, involved in the body's fight-or-flight response.

Eustress

Positive stress that motivates and focuses energy, perceived as within our coping abilities.

Fight-Or-Flight Response

A physiological reaction that occurs in response to a perceived harmful event, attack, or threat to survival.