Division A, which is operating at capacity, produces a component that currently sells in a competitive market for $46 per unit. At the current level of production, the fixed cost of producing this component is $10 per unit and the variable cost is $18 per unit. Division B would like to purchase this component from Division A. The price that Division A should charge Division B for this component is:

Multiple Choice

• $37 per unit.
• $64 per unit.
• $28 per unit.
• $18 per unit.
• $46 per unit.