Answer the Following Questions Using the Information Below

question 123

Multiple Choice

Answer the following questions using the information below:
Division A sells ground veal internally to Division B, which in turn, produces veal burgers that sell for $10 per pound. Division A incurs costs of $1.25 per pound while Division B incurs additional costs of $5.00 per pound.
-Which of the following formulas correctly reflects the company's operating income per pound?

• A) $10.00 - ($1.25 + $5.00) = $3.75
• B) $10.00 - ($2.50 + $5.00) = $2.50
• C) $10.00 - ($1.25 + $7.50) = $1.25
• D) $10.00 - ($0.50 + $2.50 + $7.00) = 0

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Definitions:

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