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Answer the Following Questions Using the Information Below

Question 49

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.
-Which formula correctly reflects the company's operating profit per kilo?


A) $5.00 - ($1.25 + $2.50) = $1.25
B) $5.00 - ($0.25 + $1.25 + $3.50) = 0
C) $5.00 - ($0.75 + $3.75) = $0.50
D) $5.00 - ($0.75 + $2.50) = $1.75

Correct Answer:

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