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

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 A'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

Correct Answer:

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