King Khan Corporation (KKC) manufactures kongs and kangs, the production of which requires considerable energy. Power generation department costs amounted to $4 million this month, for a total of 50 million kilowatt hours (kwh) supplied to the plant. Analysis shows that 40% of power generation costs are fixed. This month the Kong Dept. made 5 million kongs, each using 4 kwh, and the Kang Dept. made 4 million kangs, each using 6 kwh.

Assuming power generation costs are allocated based on usage, which is true?

A. Kong will be charged $1.6 million

B. Kang will be charged $2.18 million

C. Kang's charge does not depend on Kong's usage

D. The simplest algorithm to allocate power costs will be insulating

E. All are true