Lombard Division has the capacity to make 1,500 units of an intermediate good that is sold both internally and on the open market for a price of $28 each. To make the product, Lombard incurs $6 of variable cost per unit and $12 of fixed costs per unit. What is the minimum price Lombard would accept for an internal transfer of 1,000 units of the product if the division is operating at 50% capacity?

A. $6 per unit

B. $12 per unit

C. $28 per unit

D. $11.50 per unit

Please show work.