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

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