The fabrication department has excess capacity to produce 5,000 units of a key circuit board, which has the details below.

Market price: $48

Variable selling/distribution costs on external sales: 5

Variable manufacturing cost: 21

Fixed manufacturing cost: 10

The electronic assembly department needs 6,500 of these circuit boards. It can buy them externally for $46 each.

What is the minimum transfer price that would be negotiated for this circuit board (rounded to nearest cent if necessary)?

$26.08

$31.08

$29.77

$23.77