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Division X sells organic high-gluten flour to Division Y. Division X incurs costs of $0.375...

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Accounting

Division X sells organic high-gluten flour to Division Y. Division X incurs costs of $0.375 per kilogram of flour. Division Y makes loaves of bread that sell for $2.50 each. Division Y incurs costs of $1.25 per loaf, excluding the cost of flour. Each loaf of bread uses one-half kilogram of flour. What is the operating income per kilogram of flour for Division X if the transfer price is set at $0.625/kg?

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