Answer the Following Questions Using the Information Below

question 51

Multiple Choice

Answer the following questions using the information below:
Division A sells soybean paste internally to Division B,which in turn,produces soybean burgers that sell for $5 per kilo.Division A incurs costs of $0.75 per kilo while Division B incurs additional costs of $2.50 per kilo.
-What is Division A's operating profit per kilo,assuming the transfer price of the soybean paste is set at $1.25 per kilo?

• A)$0.500
• B)$1.250
• C)$1.625
• D)$0.875

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