Concept:
For a two-dimensional state of stress, the principal (maximum and minimum normal) stresses are given by
\[
\sigma_{1,2}
=
\frac{\sigma_x+\sigma_y}{2}
\pm
\sqrt{\left(\frac{\sigma_x-\sigma_y}{2}\right)^2+\tau_{xy}^{\,2}}.
\]
The larger value gives the maximum principal (normal) stress.
Step 1: Write the given stresses.
Given,
\[
\sigma_x=1200\text{ MPa},
\]
\[
\sigma_y=600\text{ MPa},
\]
\[
\tau_{xy}=400\text{ MPa}.
\]
Step 2: Compute the average normal stress.
\[
\frac{\sigma_x+\sigma_y}{2}
=
\frac{1200+600}{2}
=
900\text{ MPa}.
\]
Step 3: Compute the radius of Mohr's circle.
\[
R
=
\sqrt{\left(\frac{1200-600}{2}\right)^2+400^2}
=
\sqrt{300^2+400^2}
=
\sqrt{250000}
=
500\text{ MPa}.
\]
Step 4: Calculate the maximum principal stress.
\[
\sigma_{\max}
=
900+500
=
1400\text{ MPa}.
\]
Hence,
\[
\boxed{\sigma_{\max}=1400\text{ MPa}.}
\]
Therefore, the correct option is
\[
\boxed{(D)\;1400\text{ MPa}.}
\]