Use the Following Information for the Next 3 Questions

Multiple Choice

Use the following information for the next 3 questions.
Division X sells organic high-gluten flour to Division Y. Division X incurs costs of $0.375 per pound of flour. Division Y makes loaves of bread that sell for $2.50 each. Division Y incurs costs of $1.25 per loaf, excluding the cost of the flour. Each loaf of bread uses one-half pound of flour.
-What is the operating income for the entire organization if 100,000 loaves of bread are sold?

A) $93,750
B) $125,000
C) $106,250
D) $87,500