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Axelia Corporation has two divisions, Reflining and Extraction. The company's primary product is Lubod Ol. Each diision's costs are provided below Extraction: Variable costs per

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Axelia Corporation has two divisions, Reflining and Extraction. The company's primary product is Lubod Ol. Each diision's costs are provided below Extraction: Variable costs per barrel of oll $16 Refining Variable costs per banel of oil $29 Fixed costs per barrel of od $32 The Refning Diision has been operating at a capacity of 40,500 barels a day and usualily purchases 26,100 bamels of ol hom the Extraction DiMsion and 15,400 barels from other suppliers at 561 per barrel Assume 210 banels are transferred from the Extraction Dvision to the Refining Diision for a transfer price of $19 per barrel The Reining Division sells the 210 barrels at a price of $130 each to customers. What is the operating income of both dusions together? O A 7,980 . sa,820 . $23.310 O D. $12,390 Axelia Corporation has two divisions, Reflining and Extraction. The company's primary product is Lubod Ol. Each diision's costs are provided below Extraction: Variable costs per barrel of oll $16 Refining Variable costs per banel of oil $29 Fixed costs per barrel of od $32 The Refning Diision has been operating at a capacity of 40,500 barels a day and usualily purchases 26,100 bamels of ol hom the Extraction DiMsion and 15,400 barels from other suppliers at 561 per barrel Assume 210 banels are transferred from the Extraction Dvision to the Refining Diision for a transfer price of $19 per barrel The Reining Division sells the 210 barrels at a price of $130 each to customers. What is the operating income of both dusions together? O A 7,980 . sa,820 . $23.310 O D. $12,390

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