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Axelia Corporation has two divisions, Refining and Extraction. The company's primary product is Lubol Oll Each division's costs are provided below. Extraction Refining Variable costs
Axelia Corporation has two divisions, Refining and Extraction. The company's primary product is Lubol Oll Each division's costs are provided below. Extraction Refining Variable costs per barrel of Fored costs per barrel of oil Variable costs per barrel of oil Fixed costs per barrel of oil 57 $ 5 $28 $32 The Refining Division has been operating at a capacity of 40.000 barrels a day and usually purchases 25.000 barrels of from the Extraction Division and 15.000 barrels from other superat 60 per Assume 200 barrels are transferred from the Extraction Division to the Refining Division for a transfer price of $ per barrel The Refing Division sets the 200 barrels at a price of $20 each to customer operating income of both divisions together? Murple Choice 0 O 7200 0 O $9.500 0 C) 10.800 0 520,400
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