Timekeeper Corporation has two divisions, Distribution and Manufacturing. The company's primary product is high-end watches. Each division's costs are provided below:

Manufacturing: Variable costs per unit $1.36

Fixed costs per unit $5.77

Distribution: Variable costs per unit $1.30

Fixed costs per unit $0.50

The Distribution Division has been operating at a capacity of 4,009,000 units a week and usually purchases 2,004,500 units from the Manufacturing Division and 2,004,500 units from other suppliers at $13.00 per unit.

Assume 110,000 units are transferred from the Manufacturing Division to the Distribution Division for a transfer price of $8.00 per unit. The Distribution Division sells the 110,000 units at a price of $18 each to customers. What is the operating income of both divisions together?

	A.	$347,600
	B.	$392,150
	C.	$997,700
	D.	$634,700