North Division sells a part internally to South Division. South Division uses the part to produce inexpensive products sold at discount stores. North Division incurs costs of $1.50 per part, while South Division incurs additional costs of $4.80 per product. North Division sells the part to South Division for $2.00 per part. The final product is sold to external customers for $8.00 each. Which of the following formulas correctly reflects the company's operating income? $8.00 - $1.50 - $4.80 = $1.70 $8.00 - $1.50 = $6.50 $8.00 - $1.50 - $4.80 - $2.00 = $(0.30) $8.00 - $4.80 - $2.00 = $1.20