Micah Corporation has two divisions, A and B. The following information is provided for Division A: Unit selling price $ 76 Unit variable costs $ 43 Unit fixed costs $ 23 Division B uses the type of product produced by Division A and has approached Division A about buying the product internally. Division B is currently paying $58 to purchase the product from an outside source. If Division A sells internally, it can save $7.50 per unit in variable costs. Assuming Division A is operating at capacity, what price should it charge Division B if the transfer is to be made?

Multiple Choice

a. $58.00

b. $76.00

c. $66.00

d. $68.50