Axelia Corporation has two​ divisions, Refining and Extraction. The​ company's primary product is Luboil Oil. Each​ division's costs are provided​ below:   ​ Extraction: Variable costs per barrel of oil $10.00   Fixed costs per barrel of oil $4.00 ​ Refining: Variable costs per barrel of oil $26.00   Fixed costs per barrel of oil $40.00   The Refining Division has been operating at a capacity of 40,300 barrels a day and usually purchases 26,000 barrels of oil from the Extraction Division and 15,800 barrels from other suppliers at $66.00 per barrel.   Assume 220 barrels are transferred from the Extraction Division to the Refining Division for a transfer price of $24.00 per barrel. The Refining Division sells the 220 barrels at a price of $200.00 each to customers. What is the operating income of both divisions​ together?   A; $26,400.00 B. $11,880.00 C. $ 10,560.00 D. $38,720.00

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