Answer the Following Question(s)using the Information Below

question 11

Multiple Choice

Answer the following question(s) using the information below.
Beta Shoe Ltd.manufactures only one type of shoe and has two divisions,the Sole Division,and the Assembly Division.The Sole Division manufactures soles for the Assembly Division,which completes the shoe and sells it to retailers.The Sole Division "sells" 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 at 100,000 units.
Sole's costs per pair of soles are:
Assembly's costs per completed pair of shoes are:

-If the Assembly Division sells 100,000 pairs of shoes at a price of $60 a pair to customers,what is the company's operating income?

• A)$4,400,000
• B)$3,400,000
• C)$3,000,000
• D)$2,600,000
• E)$2,400,000

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Definitions:

Classification

The organization of items into categories based on similarities or specific criteria.

Expiration Date

The date after which a product, such as food or medicine, is not recommended to be used because it may not be safe or effective.

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Organizing words or items according to the standard order of the letters in the alphabet.

Antagonist

A drug that blocks the actions of a receptor or its intended ligand.