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elia Corporation has two divisions, Refining and Extraction. The company's primary product is tubol OL. Each division's costs are provided below. Extraction Refining Variable costs

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elia Corporation has two divisions, Refining and Extraction. The company's primary product is tubol OL. Each division's costs are provided below. Extraction Refining Variable costs per barrel of oil Fred costs per barrel of oil Variable costs per barrel of Fixed costs per barrel of o 55 $28 $32 The Refining Division has been operating at a capacity of 40.000 barrels a day and usually purchases 25.000 barrels of oil from the Extraction Division and 15.000 barrels from other suppliers at $60 per barrel Assume 200 barrels are transferred from the Extraction Division to the Refining Division for a transfer price of $18 per barrel. The Refining Division sells the 200 bare at a price of $120 each to customers what is operating income of both divisions together? Multiple Choice 1 0 O 57200 $9.000 0 o $10.00 0 0 $20,400

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