In the Bombadier Company, Division A has a product that can be sold either to outside customers or to Division B. Information about these divisions is given below:

	Case 1	Case 2
Division A:
Capacity in units	100,000	100,000
Number of units sold externally	100,000	60,000
Market selling price	$90	$75
Variable costs per unit	73	58
Fixed costs per unit based on capacity	10	10
Division B:
Number of units needed for production	40,000	40,000
Purchase price per unit from external supplier	$86	$74

The company uses the opportunity cost approach to transfer pricing. What is the minimum transfer price in Case 2?

a.$58

b.$68

c.$74

d.$75