ABC has two divisions: Division A and Division B. Division As practical capacity is 1,000,000 units of component AP100 per year. ABC can sell 700,000 units of XL50 at a market price of $1,100. Division B needs 250,000 units of component XL50 to manufacture its product. If Division A sells to Division B it does not incur the variable selling costs. For the current period, the pertinent costs for XL50 for Division A were:

Cost	Per unit
Direct materials	$315
Direct labour	125
Variable selling costs	12
Variable manufacturing overhead	100
Fixed manufacturing overhead	150

What is the minimum transfer price that Division A would be willing to accept from Division B for component XL50?

A.552 B.315 C.440 D.540