Answer the Following Questions Using the Information Below

Multiple Choice

Answer the following questions using the information below:
Division A sells soybean paste internally to Division B,which in turn,produces soybean burgers that sell for $5 per kilo.Division A incurs costs of $0.75 per kilo while Division B incurs additional costs of $2.50 per kilo.
-What is Division A's operating profit per kilo,assuming the transfer price of the soybean paste is set at $1.25 per kilo?

A) $0.500
B) $1.250
C) $1.625
D) $0.875