McKenna's Florida Division Is Currently Purchasing a Part from an Outside

McKenna's Florida Division is currently purchasing a part from an outside supplier.The company's Alabama Division,which has excess capacity,makes and sells this part for external customers at a variable cost of $22 and a selling price of $34.If Alabama begins sales to Florida,it (1) will use the general transfer-pricing rule and (2) will be able to reduce variable cost on internal transfers by $4.If sales to outsiders will not be affected,Alabama would establish a transfer price of:

A) $18.
B) $22.
C) $30.
D) $34.
E) some other amount.