Answer the Following Question(s) Using the Information Below

question 2

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 operating income of both divisions together?

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

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Definitions:

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Feedback or remarks from a person in authority, aimed at evaluating and improving an employee's performance, often pointing out flaws or areas for improvement.

Ninth Amendment

An amendment to the U.S. Constitution that asserts the existence of unenumerated rights retained by the people, beyond those specifically mentioned in the Constitution.

Federal Regulation

Rules and standards issued by federal agencies aimed at enforcing laws enacted by the legislature at the national level.

Business

An organization or enterprising entity engaged in commercial, industrial, or professional activities.