Houston Investments (HI),an Investment Banking Firm,has Proposed Two Types of Payment

Houston Investments (HI) ,an investment banking firm,has proposed two types of payment plans for the IPO being considered by Anderson Exploration.The first is a firm commitment of $20,000,000.The second is a best efforts arrangement in which HI will receive $3.00 for every share sold up to a maximum of $1,200,000 for the 400,000 shares being offered.How much money will HI earn under the best efforts method if it is able to sell only 85% of the offering at a price of $60.00 per share?

A) $800,000
B) $1,080,000
C) $1,020,000
D) $960,000