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)	$	103.00
Variable cost per unit	$	66.00
Fixed costs per unit (based on capacity)	$	10.00
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. If Division A is currently selling 27,000 units on the outside market, what is the lowest acceptable transfer price for Division A if it were to sell 5,000 units to the other division?

Multiple Choice

• $80.80

• $88.00

• $91.00

• $78.00