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	$	78
Variable cost per unit	$	54
Total fixed costs	$	448,000
Capacity in units		28,000

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 $74 per unit and would substitute the part made by Division A. Division B requires 5,300 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?

A) 78

b) 70

c) 16

d) 54