HBD Inc. has two Divisions, Division A and Division B, both of which are investment centres with external markets. Division A produces a single component which is sells externally for $8 per unit. The component's variable costs amount to $6 per unit. Division B uses a component identical to the one A produces; however Division B sources these from an external supplier for $8 per unit. Division A is operating at full capacity while Division B's production is backlogged for several months. Divisions A and B each have a practical capacity of 100,000 units of output per period. Recently, Division B's only component supplier went out of business, leaving it with a backlog of orders. Division A thus becomes Division B's only possible sourcing option for these components. The heads of both Divisions soon sit down to try to agree on a transfer pricing policy. Division B requires 50,000 components from Division A. What would be the minimum price that Division A would accept for each of its components? Multiple Choice $10 $6 $8 $16