True North Corporation has two divisions. The Mining division makes Toldine, which is then transferred to the Metals division. Toldine is further processed by the Metals division and is sold to customers at a price of $190 per unit. The Mining division is currently required by True North to transfer its total yearly output of 250,000 units of Toldine to the Metals division at 120% of full manufacturing cost. Unlimited quantities of Toldine can be purchased and sold on the outside market at $95 per unit. The following table gives the manufacturing cost per unit in the Mining and Metals divisions for 2020 : 1. Calculate the operating incomes for the Mining and Metals divisions for the 250,000 units of Toldine transferred under the following transfer-pricing methods: (a) market price and (b) 120% of full manufacturing cost. 2. Which transfer-pricing method does the manager of the Mining division prefer? What arguments might he make to support this method