A company has two divisions: Division X and Division Y. Both divisions are profit centres. Division X can produce up to 139966 kilograms of plastic per year. Division Y needs 43541 kilograms of plastic in order to manufacture different products. The market price is $5.58 per kilogram of plastic. The following costs pertain to Division X:

		Variable manufacturing costs per kilogram	$3.53
		Fixed manufacturing costs per kilogram	8.80

What is the minimum transfer price that Division X would be willing to receive for the 43541 kilograms sold to Division Y if Division X expects to be operating at full capacity this year?

Select one:

a. $12.33

b. $5.58

c. $8.80

d. $3.53