One production department uses an input made by another production department. The buying department can buy this input on the open market for $125. The following per unit financial information pertains to the selling department.

Market price $148

Variable selling/distribution costs on external sales 10

Variable manufacturing cost 75

Fixed manufacturing cost 37

The buying department needs 20,500 units of this input, but the selling department only has excess capacity to produce 3,500 units. What is the the minimum transfer price that can be negotiated (rounded to nearest dollar if necessary)?

	a.	No transfer price possible.
	b.	$122.
	c.	$100.
	d.	$75.