The Engine Division of the Taylor Corporation sells small engines to the outside market at a selling price of $146 per engine. The Engine Division is currently operating at a capacity of 46856 engines per year and is currently selling 34622 engines annually. The variable cost of producing an engine is $106. The Snowmobile Division of the Taylor Corporation currently purchases 20882 engines from an external supplier at a cost of $137 per engine.

What is the maximum transfer price for a transfer of 20882 engines from the Engine Division to the Snowmobile Division?

Select one:

a. $122.57

b. $129.43

c. $106.00

d. $137.00

PLEASE ANSWER ASAP