Genesis Scents has two divisions: the Cologne Division and the Bottle Division. The Bottle Division produces containers that can be used by the Cologne Division. The Bottle Division's variable manufacturing cost is $2, shipping cost is $0.10, and the external sales price is $3. No shipping costs are incurred on sales to the Cologne Division, and the Cologne Division can purchase similar containers in the external market for $2.60.

The maximum amount the Cologne Division would be willing to pay for each bottle transferred would be:

Select one:

a.

$2.00

b.

$2.10

c.

2.60

d.

$2.90

e.

$3.00