The Raisin Division of Trail Mix Foods, Incorporated had the following operating results last year: Sales (150,000 pounds of raisins)$60,000 Variable expenses 37,500 Contribution margin 22,500 Fixed expenses 12,000 Profit$10,500 Raisin expects identical operating results this year.Assume that the Raisin Division is currently operating at its capacity of 150,000 pounds of raisins. Also assume that the Peanut Division wants to purchase an additional 20,000 pounds of raisins from the Raisin Division. Under these conditions, what amount per pound of raisins would the Raisin Division have to charge the Peanut Division in order to maintain its current profit?
A. $0.25 per pound.
B. $0.08 per pound.
C. $0.15 per pound.
D. $0.40 per pound.
Answer: D
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