Kitty City Company's Canned Foods Division Has Collected the Following $~~~~~~~~$

Multiple Choice

Kitty City Company's Canned Foods division has collected the following information:
Normal selling price $~~~~~~~~$$~~~~~~~~$$~~~~~ ~~~~$$~~~~~~~~$$~~ ~$ $3.90 per can
Variable product costs $~~~~~~~~$$~~~~~~~~$$~~~~~~~~~~$$~~~~~~~~$ 2.20 per can
Fixed product costs . $~~~~~~~~$$~~~~~~~~$$~~ ~~~~~$$~~~~~~~~$$~~~~ ~ ~$ 80 per can
Variable selling and administrative costs . $~~~~~~~~$ 30 per can
Production capacity $~~~~~~~~$$~~~~~~~~$$~~ ~~~$$~~~~~~~~$$~~~~~~~~$ 2,500,000 cans

The Canned Foods division is currently producing 2,000,500 cans.The company's Dinner Pack division wants to buy 350,000 cans.The minimum transfer price would be

A) $1.10
B) $2.50
C) $3.00
D) $3.30