Spring Corp. has two divisions, Daffodil and Tulip. Daffodilproduces a gadget that Tulip could use in its production. Tulipcurrently purchases 100,000 gadgets for $12.50 on the open market.Daffodil's variable costs are $6 per widget while the full cost is$9.35. Daffodil sells gadgets for $13 each. If Daffodil isoperating at idle capacity, what would be the maximum transferprice Tulip would pay internally ?

A. $6.00

B. $9.35

C. $12.50

D.$13.00

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