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Use the information below to answer the following question(s) .
Blackoil Corp. has two divisions, Refining and Production. The company's primary product is Clean Oil. Each division's costs are provided below:
The Production Division is able to sell the oil to other areas for $24 per litre. The Refining Division has been operating at a capacity of 80,000 litres a day, using oil from the Production Division and oil purchased from other suppliers. The Refining Division usually purchases 50,000 litres of oil, on average, from the Production Division and 30,000 litres, on average, from other suppliers at $40/litre.
-Division A sells soybean paste internally to Division B, which, in turn, produces soybean burgers that sell for $5 per kilogram. Division A incurs costs of $0.75 per kilogram, while Division B incurs additional costs of $2.50 per kilogram. What is Division B's operating income per kilogram assuming the transfer price of the soybean paste is set at $1.25 per kilogram?
Personally Liable
means an individual is legally obligated to pay a debt or damages out of their own assets.
Obligations
Obligations are legal or moral duties that a person or entity is required to fulfill, including contractual commitments or the requirement to compensate for harm caused by one's actions.
General Partnership
See partnership.
Personally Liable
Being directly responsible for a debt or obligation, such that one's personal assets can be pursued by creditors.
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