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

question 80

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 B'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

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Definitions:

Media Divergence

The trend of media platforms and outlets becoming more varied and specialized, catering to niche audiences and interests.

Advertising Spillover

The effect that advertising for one product or brand has on another due to overlap in customer base or market.

Cord-Cutting

The trend of consumers cancelling or forgoing traditional cable or satellite television services in favor of streaming or Internet-based alternatives.

Streaming Services

Platforms that deliver content over the internet, allowing users to watch TV shows, movies, and other media without downloading them.