The Raisin Division of Trail Mix Foods, Incorporated had the following operating results last year:

Sales (159,000 pounds of raisins)$79,500Variable expenses34,980Contribution margin44,520Fixed expenses16,500Profit$28,020

Raisin expects identical operating results this year. The Raisin Division has the ability to produce and sell 209,000 pounds of raisins annually.

Assume that the Peanut Division of Trail Mix Foods wants to purchase an additional 29,000 pounds of raisins from the Raisin Division. Raisin will be able to increase its profit by accepting any transfer price above:

• $0.22 per pound.
• $0.10 per pound.
• $0.28 per pound.
• $0.50 per pound.