Division 1 of Ace Company makes and sells wheels that can either be sold to outside customers or transferred to Division 2. The following data are available from last month:

Division 1:

Selling price to outside customers	$66 per unit
Variable cost when sold to outside customers	$46 per unit
Capacity	52,000 units

Division 2:

Number of wheels needed per month	16,000 units
Price per wheel paid to an outside supplier	$60 per unit

If Division 1 sells the wheels to Division 2, Division 1 can avoid $4 per unit in sales commissions.

Suppose that Division 1 sells 37,000 units each month to outside customers. According to the formula in the text, what is the lowest acceptable transfer price from the viewpoint of the selling division?

$60.00 per unit

$56.00 per unit

$43.25 per unit

$44.30 per unit