An Appropriate Transfer Price Between Two Divisions of the Stark

An appropriate transfer price between two divisions of The Stark Company can be determined from the following data: $\begin{array}{lr}\text { Fabricating Division: }\\\text { Market price of the subassembly } & \$ 50 \\\text { Variable cost of the subassembly } & \$ 20 \\\text { Excess capacity (in units) } & 1,000\\\text { Assembly Division: }\\\text { Number of units needed }&900\end{array}$ What is the natural bargaining range for the two divisions?

A) Between $20 and $50.
B) Between $50 and $70.
C) Any amount less than $50.
D) $50 is the only acceptable price.
E) $20 is the only acceptable price.