Answer the Following Questions Using the Information Below:
the Betashoe

question 115

Multiple Choice

Answer the following questions using the information below:
The Betashoe Company manufactures shoes.It has two divisions: the Sole Division and the Assembly Division.The Sole Division manufactures soles for the Assembly Division,which completes the manufacturing of the shoes and sells the completed product to retailers.The Sole Division 'sells' pairs of soles to the Assembly Division.The market price for the Assembly Division to purchase a pair of soles is $20.(Ignore changes in inventory. ) The fixed costs for the Sole Division are assumed to be the same over the range of 40 000-100 000 units.The fixed costs for the Assembly Division are assumed to be $7 per pair of shoes at 100 000 units.
Costs per pair of soles are:
$\begin{array}{ll}\text { Direct materials } & \$ 4 \\\text { Direct labour } & \$ 3 \\\text { Variable overhead } & \$ 2 \\\text { Division fixed costs } & \$ 1\end{array}$

Assembly's costs per completed pair of shoes are:
$\begin{array} { l l } \text { Direct materials } & \$ 6 \\ \text { Direct labour } & \$ 2 \\ \text { Variable overhead } & \$ 1 \\ \text { Division fixed costs } & \$ 7 \end{array}$
-Assume the transfer price for a pair of soles is 180% of total costs of the Sole Division and 40 000 pairs of soles are produced and transferred to the Assembly Division.The Sole Division's operating profit is:

• A)$320 000
• B)$360 000
• C)$440 000
• D)$400 000

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Definitions:

Disenfranchised

Refers to individuals who have been deprived of the right to vote or other rights of citizenship, often as a result of discriminatory laws or practices.

Black Men

Males of African descent, a demographic group that has historically experienced various forms of discrimination and inequality.

First Party System

Refers to the political system in the United States during the late 18th and early 19th centuries, characterized by the rivalry between the Federalist Party and the Democratic-Republican Party.

Slavery

A system in which individuals are owned as property by others and are forced to work without consent and with little to no personal freedom.