The Book Division of Tandem books manufactures and sells paper back books for $9.60 per book. Its unit variable costs and unit fixed costs are $0.24 and $0.09, respectively. The Sunset Division wants to purchase 50,000 special edition hardback books. The variable cost will be $1.90 per book.

Assuming the Tandem Division is already operating at full capacity, what is the minimum transfer price it should accept?

Group of answer choices

$11.26

$11.59

$11.83

$11.50