Cost Accounting Question Underwood Company uses cost-based transfer pricing. Its Food Processing Division has a standard variable cost of $8.50 per case and allocated fixed overhead of $2.25. The Food Processing Division, which has excess capacity, sells its output to external customers for $12.00 per case. If Retail Division could buy a case of the product from the external market for $9, what should be the correct transfer price so that the two divisions decisions are congruent with the interests of the firm?: A. $14.25. B. $8.5. C. $10.75. D. $8.50 plus a markup. E. $9 F. negotiated between the managers of the Processing and Retail Divisions