Division A of Sebastian Enterprises manufactures a product called XYZ. Current data for Division A are as follows:

Capacity

59943

Current production & sales

50873

Per unit data

Selling price

$94.24

Variable costs - production

32.20

Variable costs - marketing relating to external sales

14.59

Fixed costs (total)

$772719

Division B of Sebastian Enterprises currently buys 20592 units of XYZ yearly from an outside supplier at a price of $55.00. Division B would like to buy the 20592 units of XYZ it needs annually from Division A.

What is the minimum transfer price?

Select one:

a.$32.20

b.$51.54

c.$73.34

d.$58.75

PLEASE ANSWER ASAP :))))