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A company has two divisions: Division X and Division Y. Both divisions are profit centres. Division X can produce up to 147717 kilograms of plastic

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A company has two divisions: Division X and Division Y. Both divisions are profit centres. Division X can produce up to 147717 kilograms of plastic per year. Division Y needs 56697 kilograms of plastic in order to manufacture different products. The market price is $6.90 per kilogram of plastic. The following costs pertain to Division X: Variable manufacturing costs per kilogram Fixed manufacturing costs per kilogram $3.86 9.96 What is the minimum transfer price that Division X would be willing to receive for the 56697 kilograms sold to Division Y if Division X expects to be operating at full capacity this year? Select one: O a. $6.90 Ob. $13.82 Oc. $3.86 O d. $9.96

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