Division A makes 100 units of a product for a fixed cost of $200 and a variable cost of $5 per unit. Division B of the same company purchases the product from Division A. It adds $3 per unit and sells the product to an outside buyer for $13 per unit. Division A can sell the 100 units of the intermediate product to an outside buyer for $11 per unit.

What should be the transfer price? 

What decentralized decision does Division B reach? Show why this decision is correct for the entire organization