A company has two divisions, Alpha and Bravo. Alpha is currently buying a part from an outside supplier. Bravo, which has excess capacity, makes and sells the part to outside customers at a selling price of $33 and a variable cost of $21. If Bravo begins selling the part to Alpha, it will use the general transfer pricing rule and be able to reduce its variable cost on internal transfers by $4. Given this data, if sales to outsiders will not be affected, Bravo's transfer price to Alpha will be:

Multiple Choice

• $17.

• $21.

• $29.

• $33.

• None of the answers is correct.