Division a of Sibley Ltd Has Operating Data as Follows

Multiple Choice

Division A of Sibley Ltd has operating data as follows: 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