Division A sells ground veal internally to Division B, which in turn, produces veal burgers that sell for $12 per pound. Division A incurs costs of $5.25 per pound while Division B incurs additional costs of $11.50 per pound.
What is Division A's operating income per burger, assuming the transfer price of the ground veal is set at $7.00 per burger?
◦ $1.75
◦ $2.25
◦ $8.75
◦ $4.50