Answer the Following Question(s)using the Information Below

Multiple Choice

Answer the following question(s) using the information below.Easy Fit Ltd.manufactures heating, ventilation, and air conditioning (HVAC) equipment.The Manufacturing Division creates parts; and, the Assembly Division builds and sells the equipment.The Manufacturing Division "sells" furnace parts packages to the Assembly Division.The market price for the Assembly Division to purchase a mini furnace is $3,500.The fixed costs for the Manufacturing Division are assumed to be the same over the range of 2,000-5,000 units.The fixed costs for the Assembly Division are assumed to be $40.00 per unit at 5,000 units.Manufacturing costs per furnace are:
Assembly's costs per completed furnace are:

-Assume the transfer price for a furnace is 130% of total costs of the Manufacturing Division and 5,000 of the furnaces are produced and transferred to the Assembly Division.The Manufacturing Division's operating income is

A) $3,250,000.
B) $1,175,000.
C) $2,500,000.
D) $2,625,000.
E) $2,760,000.