Answer the Following Questions Using the Information Below

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 $1.50 per pound while Division B incurs additional costs of $5.00 per pound.
-What is Division A's operating income per pound, assuming the transfer price of the ground veal is set at $2.50 per pound?

A) $1.00
B) $1.75
C) $2.50
D) $3.25