Division A sells soybean paste internally to Division B, which, in turn, produces soybean burgers that sell for

$5 per pound. Division A incurs costs of $0.75 per pound and Division B incurs an additional cost of $2.50 per pound. What is Division A’s operating income per pound, assuming the transfer price of the soybean paste is set at $1.25 per pound?

       $0.50

       $0.875

       $1.250

       $1.625 

Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"