Use the Following Information for the Next 2 Questions

Multiple Choice

Use the following information for the next 2 questions.
Division A of Sibley, Inc. has operating data as follows: Division B wants to purchase units from Division A. If Division A agrees to sell units to Division B, A's variable costs will be $5 less per unit.
-If Division A has capacity available to meet B's requirements, what is the minimum price it should charge?

A) $40
B) $75
C) $20
D) $60