Almond Delights Is a Farm That Harvests Almonds and Sells

Multiple Choice

Almond Delights is a farm that harvests almonds and sells them to both external customers and to some internal business units when the deal makes fiscal sense. Almond Delights' Farm business unit is having a very successful year and provided the following information: The Almond Milk business unit of Almond Delights would like to purchase 13,490 pounds of almonds from the Farm business unit. If the Farm business unit is operating at full capacity, then what will the minimum acceptable transfer price be? (Do not round your calculations.)

A) $0.69 per pound
B) $0.87 per pound
C) $1.56 per pound
D) $1.89 per pound