Manly Aromas operates with two divisions, Aftershave and Deodorant. The Aftershave Division produces a chemical that the Deodorant Division also uses. The Aftershave Division also sells this chemical to other firms for $10 per ounce. The cost information for the Aftershave Division is as follows.

Variable costs per ounce	$6.00
Fixed costs per ounce	$15.00
Monthly production capacity	30,000 ounces

If the Aftershave Division is not operating at full capacity and can sell all of the chemical it can produce, what is the minimum transfer price that the Aftershave Division will accept?

Select one:

a. $6 per ounce

b. $15 per ounce

c. $3 per ounce

d. $10 per ounce