Division X of Charter Corporation makes and sells a singleproduct thats used by

Division X of Charter Corporation makes and sells a singleproduct thats used by manufacturers of forklift trucks. Presentlyit sells 12000 units per year to outside customers at $24 perunit. The annual capacity is 20000 units and the variable cost tomake each unit is $16. Division Y of Charter Corporation would liketo buy 10000 units a year from Division X to use in its products.There would be no cost savings from transferring the units withinthe company rather than selling them on the outside market. Whatshould be the lowest acceptable transfer price from the perspectiveof Division X?A. $17.60B. $21.40C. $24.00D. $16.00