Kayak Industries is a decentralized company that evaluates its divisions based on ROI. The Red Division has the capacity to make 1,000 units of a component. The Red Division's variable costs are $40 per unit.

The Green Division can use the component in one of its products. The Green Division would incur $50 of variable costs to convert the component into its own product that sells for $160.

Assume the Red Division can sell 800 units at $120 each. Any excess capacity will be unused unless the units are purchased by the Green Division, which could use up to 100 units. The maximum transfer price that the Green Division would be willing to pay would be:

Group of answer choices

A) $160

B) $110

C) $100

D) $6