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The Wood Division of Fir Products, Inc. manufactures wood mouldings and sells them externally for $185. Its variable cost is $44 per unit, and its

The Wood Division of Fir Products, Inc. manufactures wood mouldings and sells them externally for $185. Its variable cost is $44 per unit, and its fixed cost per unit is $18. Fir's president wants the Wood Division to transfer 4100 units to another company division at a price of $62.

Assuming the Wood Division has available capacity of 4100 units, the minimum transfer price it should accept is

a)$18.

b)$44.

c)$62.

d)$185.

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