Division T of Clocker Company makes a timer which it sells for $30 to outside customers.

Red River Division:
Production capacity	18,000 bags
Selling price per bag to outside customers	$20 per bag
Variable production cost per bag	$10 per bag
Variable selling cost per bag	$4 per bag

White Mountain Division:
Number of bags needed annually	6,000 bags
Price per bag paid to an outside supplier	$16 per bag

By selling to the White Mountain Division, the Red River Division will avoid $3 per bag in selling costs. If Red River can sell 15,000 bags annually to outside customers, according to the formula in the text, what is the lowest acceptable transfer price from the viewpoint of the selling division?

		$20 per bag
		$16 per bag
		$11 per bag
		$14 per bag