Answer the Following Question(s)using the Information Below

question 85

Multiple Choice

Answer the following question(s) using the information below.Delta Footwear Ltd.manufactures only one type of sandal and has two divisions, the Sole Division, and the Assembly Division.The Sole Division manufactures soles for the Assembly Division, which completes the sandal 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 $18.(Ignore changes in inventory.) The per unit fixed costs are based on a production of 50,000 pairs of sandals.Sole's costs per pair of soles are:
Assembly's costs per completed pair of sandals are:

-Assume the transfer price for a pair of soles is 150% 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)$250,000.
• B)$260,000.
• C)$248,000.
• D)$300,000.
• E)$400,000.

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Definitions:

Minimizing Union Control

Strategies or practices implemented by companies to reduce the influence and power of labor unions in workplace decisions and policies.

Legal Fees

Legal fees are charges for the advice and services provided by lawyers, including consultation, representation in court, and the preparation of legal documents.

Employee Turnover

The rate at which employees leave a company and are replaced by new employees, impacting organizational knowledge and continuity.

Moonlighting Unethically

Engaging in secondary employment that conflicts with one's primary job duties or interests, violating ethical or contractual obligations.