Chute Company's Extract Division Has Collected the Following Information:
Normal $~~~~~~~~$

Multiple Choice

Chute Company's Extract division has collected the following information:
Normal selling price $~~~~~~~~$$~~~~~~~~$$~~~~~~~~~~$$~~~~~~~~$ $2.90 per bottle
Variable product costs $~~~~~~~~$$~~~~~~~~$$~~~~~~~~~$$~~~~~~~~$ 1.25 per bottle
Fixed product costs . $~~~~~~~~$$~~~~ ~~$$~~~~~~~~$$~~~~~~~~$$~~ ~~~~$ 50 per bottle
Variable selling and administrative costs . $~~~~~~~~$ 25 per bottle
Production capacity $~~~~~~~~$$~~~~ ~~$$~~~~~~~~$$~~ ~~~~~$$~~~~~~~~$ 1,500,000 bottles
Assuming that the division has excess capacity of 300,000 and the Baked Goods division wants to buy 250,000 bottles,the minimum transfer price would be

A) $2.90
B) $2.00
C) $1.50
D) $1.15