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 $1.25 per pound while Division B incurs additional costs of $5.00 per pound.
-What is Division A's operating income per burger,assuming the transfer price of the ground veal is set at $2.00 per burger?
A) $0.75
B) $1.50
C) $2.25
D) $3.00

Question

Quizplus · Accepted Answer

Division A's operating income per burger is calculated as the transfer price ($2.00) minus Division A's cost ($1.25), which equals $0.75.

Answer the Following Questions Using the Information Below