Auditors have determined that the threshold of $4\%$ of Net income is adequate to calculate the Planning materiality for the audit of NKU, Inc. Using the information below determine what pair of numbers is the correct answer for the Planning materiality$/$Tolerable Misstatement for Acc. Rec. that is deemed to be $40\%$ of the business.

Current Assets $=$ $$100$mil, Non Current Assets $=$ $$200$mil

Current Liability $=$ $$35$mil, Noncurre Liab $=$ $$50$mill

Sales $=$ $$175$mil, GOGS $=$ $$95$mil

Op$.$ Exp $=$$$25$mi

Group of answer choices

$$8,600,000/$$$720,000$

$2,200,000/880,000$

$1,200,000/720,000,000$

$2,600,000/880,000$