Simon Cereal Purchased 100 Pounds of Cornflakes for $100

Multiple Choice

Simon Cereal purchased 100 pounds of cornflakes for $100. Transportation cost to Simon's production facility was $25 for the barrel of cornflakes shipped FOB destination. Simon paid $60 for 100 one-pound biodegradable plastic bags into which the cornflakes were placed. The cost of each one-pound bag of cornflakes is:

A) $1.00.
B) $1.25.
C) $1.60.
D) $1.75.