Frances Company's Records Reveal the Following: Variable Costs

Multiple Choice

Frances Company's records reveal the following: Variable costs:
The variable costs of Division Y will be incurred whether it buys from Division X or from an outside supplier.Assume Division X has excess capacity.Division Y can buy the component from an outside supplier for $32 per unit.What is the lowest transfer price per unit at which Division X would be willing to sell to Division Y?

A) $8
B) $22
C) $24
D) $32