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Rexon Corporation has two divisions, Refining and Extraction. The company's primary product is Motor Oil Each division's costs are provided below Extraction: Variable cost/barel Fixed

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Rexon Corporation has two divisions, Refining and Extraction. The company's primary product is Motor Oil Each division's costs are provided below Extraction: Variable cost/barel Fixed cost/barrel Variable cost/barrel Fixed cost/barrel Refining: $ 6.30 $ 4,50 $ 25.20 $29.80 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 barrels at a price of $108 each to customers. What is the operating income of both divisions together? Multiple Choice O $8.640 O $11.700 O $16.560 $15,300

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