Sheridan Company manufactures and sells high-priced motorcycles. The Engine Division produces and sells engines to other motorcycle companies and internally to its Retail Division. It has been decided that the Engine Division will sell 22000 units to the Retail Division at $1050 a unit. The Engine Division, currently operating at capacity, has a unit selling price of $3250 and unit variable costs and unit fixed costs of $1050 and $550, respectively. The Production Division is currently paying $3100 per unit to an outside supplier. Of this amount, $110 per unit can be saved on internal sales from reduced selling expenses. What is the minimum transfer price that the Engine Division should accept? $3100 $2200 $3140 $3250