Ajax Corporation has two divisions. The mining division makes toldine, which is then transterred to

the metals division. The toldine is further processed by the metals division and is sold to customers

at a price of $$160$ per unit. The mining division is currently required by Ajax to transfer its total

yearly output of $100,000$ units of toldine to the metals division at $110\%$ of full manufacturing cost.

Unlimited quantities of toldine can be purchased and sold on the outside market at $$100$ per unit.

The following table gives the manufacturing cost per unit in the mining and metals divisions for

$2020$ :

a Manufacturing overhead costs in the mining division are $65\%$ fixed and $35\%$ variable.

b Manufacturing overhead costs in the metals division are $60\%$ fixed and $40\%$ variable.

Q$27$: Operating income for the Mining Division under the Market Price method is:

$$1,400,000$

$$2,000,000$

$$800,000$

$$3,200,000$

$$200,000$