Mubins has two divisions, Distribution and Production. The company's primary product is soil. Each division's costs are provided below:

Production:	Variable costs per kilogram	$0.05
	Fixed costs per kilogram	$0.25
Distribution:	Variable costs per kilogram	$0.03
	Fixed costs kilogram	$0.02

The Distribution Division has been operating at a capacity of 4,000,000 kilograms a week and usually purchases 2,000,000 kilograms from the Production Division and 2,000,000 kilograms from other suppliers at $0.45 per kilogram. Assume 100,000 kilograms are transferred from the Production Division to the Distribution Division for a transfer price of $0.40 per kilogram. The Distribution Division sells the 100,000 kilograms at a price of $0.55 each to customers. What is the company's operating income?

Question 14 options:

A)	$10,000
B)	$15,000
C)	$25,000
D)	$0
E)	$20,000