the metals division. The toldine is further processed by the metals division and is sold to customers

at a price of $$160$ per unit. The mining division is currently required by Ajax to transfer its total

yearly output of $100,000$ units of toldine to the metals division at $110\%$ of full manufacturing cost.

Unlimited quantities of toldine can be purchased and sold on the outside market at $$100$ per unit.

The following table gives the manufacturing cost per unit in the mining and metals divisions for

$2020$:

a Manufacturing overhead costs in the mining division are $65\%$ fixed and $35\%$ variable.

b Manufacturing overhead costs in the metals division are $60\%$ fixed and $40\%$ variable.

Q$26$: Operating income for the Metals Division under the Full Manufacturing Cost method is:

$$2,000,000$

$$1,400,000$

$$800,000$

$$200,000$

$$3,200,000$