Division A produces a part used by Division B. The part is currently sold by Division A to outside customers for $10 each, and it takes $6 in variable costs to produce each unit.

If Division a has capacity to produce 1,000 units of the part and is currently producing and selling 800 units, then the minimum transfer price per unit that it would be willing to accept from Division B for the transfer of 400 units is:

Group of answer choices

$4.00

$6.00

$8.00

The normal selling price of the item less the opportunity cost of the transfer.