Answer the Following Questions Using the Information Below:
NSW Farmers

question 112

Multiple Choice

Answer the following questions using the information below:
NSW Farmers Coop has two divisions: Distribution and Production.The company's primary product is fertiliser.Each division's costs are provided below:
$$\begin{array} { l r l } \text { Production: } & \text { Variable costs per kilo } & \$ 0.05 \\& \text { Fixed costs per kilo } & \$ 0.25 \\\text { Distribution: } & \text { Variable costs per kilo } & \$ 0.03 \\& \text { Fixed costs per kilo } & \$ 0.02\end{array}$$ The Distribution Division has been operating at a capacity of 4 000 000 kilos a week and usually purchases 2 000 000 kilos from the Production Division and 2 000 000 kilos from other suppliers at $0.45 per kilo.
-Assume 100 000 kilos are transferred from the Production Division to the Distribution Division for a transfer price of $0.40 per kilo.The Distribution Division sells the 100 000 kilos at a price of $0.55 each to customers.What is the operating profit of both divisions together?

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

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Definitions:

Paradoxical Sleep

A phase of sleep characterized by rapid eye movement (REM) and physiological similarities to being awake, often associated with vivid dreaming.

Theta Waves

A type of brainwave pattern associated with sleep and deep relaxation, often linked to creativity and emotional connection.

Wakefulness

The state of being alert and engaged with the environment, contrasting with sleep.

Preconscious

In psychodynamic theory, descriptive of material that is not in awareness but can be brought into awareness by focusing one’s attention.