Division A makes a part that it sells to customers outside of the company. Data concerning this part appear below:

Selling price to outside customers $ $90$

Variable cost per unit $ $63$

Total fixed costs $ $640,000$

Capacity in units $40,000$

Division B of the same company would like to use the part manufactured by Division A in one of its products. Division B currently purchases a similar part made by an outside company for $$85$ per unit and would substitute the part made by Division A$.$ Division B requires $6,500$ units of the part each period. Division A can already sell all of the units it can produce on the outside market. What should be the lowest acceptable transfer price from the perspective of Division A$?$

Multiple Choice

$$90.$

$$79.$

$$16.$

$$63.$