Assume Division A has provided the following information regarding the one product that it manufactures and sells on the outside market:

Selling price per unit (on the outside market)	$ 100
Variable cost per unit	$ 70
Fixed costs per unit (based on capacity)	$ 10
Capacity in units	30,000

Division A has been offered the opportunity to sell 5,000 units of its only product to another division within the same company. The other division can either agree to a transfer price with Division A or purchase a comparable product on the outside market for $100. If Division A is currently selling 26,500 units on the outside market, what is the range of acceptable transfer prices between the two divisions?

Multiple Choice

$100.00 Transfer price $103.00

$93.00 Transfer price $100.00

$89.00 Transfer price $100.00

$79.00 Transfer price $100.00