Terrell Corporation
Terrell Corporation Produces Various Products Used in the Construction

Terrell Corporation
Terrell Corporation produces various products used in the construction industry.The Plumbing Division produces and sells 100,000 copper fittings each month.Relevant information for last month follows:
$\begin{array}{lc}\text { Total sales(all external) } & \$ 250,00 \\\text { Expenses(all on a urit base) : } & \\\text { Variable manufacturing } & \$ 0.50 \\\text { Fixed manufacturing } & .25 \\\text { Variable selling } & .30 \\\text { Fixed selling } & .40 \\\text { Variable G\&A } &.15\\\text { Fixed G\&A } & \underline{.50}\\\text { Total} &\underline{ \$ 2.10}\end{array}$


Top-level managers are trying to determine how a transfer price can be set on a transfer of 10,000 of the copper fittings from the Plumbing Division to the Bathroom Products Division.
Refer to Terrell Corporation.If the Plumbing Division is operated as an autonomous investment center and its capacity is 100,000 fittings per month,the per-unit transfer price is not likely to be below

A) $0.75.
B) $1.60.
C) $2.10.
D) $2.50.