Division A has the capacity for making 2990 motors per month and regularly sells 1870 motors each month on the intermediate market at a contribution margin of $63.55 per motor. A sister division, Division B, would like to obtain 1487 motors each month from Division A. In computing a transfer price per motor using the transfer pricing formula, the lost contribution margin per unit portion of the transfer price computation would be:

Select one:

a. $31.37

b. $63.55

c. $15.68

d. $23.53