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

Selling price to outside customers $ $54$

Variable cost per unit $ $39$

Total fixed costs $ $413,000$

Capacity in units $34,700$

Division D of the same company would like to use the part manufactured by Division C in one of its products. Division D currently purchases a similar part made by an outside company for $$53$ per unit and would substitute the part made by Division C$.$ Division D requires $5,670$ units of the part each period. Division C has ample excess capacity to handle all of Division D$$s needs without any increase in fixed costs and without cutting into outside sales. What is the lowest acceptable transfer price from the standpoint of the selling division?

Multiple Choice

$$53$

$$39$

$$50$

$$54$