Use the Information Below to Answer the Following Question(s)

question 123

Multiple Choice

Use the information below to answer the following question(s) .Bon Accord uses two divisions in the production of soybean burgers.Division A sells soybean paste internally to Division B, which, in turn, produces soybean burgers that sell for $5 per kilogram.Division A incurs costs of $0.75 per kilogram, while Division B incurs additional costs of $2.50 per kilogram.
-What is Division A's operating income per kilogram assuming the transfer price of the soybean paste is set at $1.25 per kilogram?

• A)$0.500
• B)$0.875
• C)$1.250
• D)$1.625
• E)$1.525

---

Definitions:

Product Demand

The total amount of a product or service that consumers are willing and able to purchase at a given price level.

Labor Demand

The quantity of labor that employers are willing to hire at a given wage rate.

Work Rules

Formal regulations or policies dictating the conditions and behaviors allowed in a workplace.

Demand Curve

An illustrative chart that depicts how the demand for a product varies with its price.