Laissez Faire Has Two Divisions: the Cologne Division and the Bottle

Laissez Faire has two divisions: the Cologne Division and the Bottle Division. The Bottle Division produces containers that can be used by the Cologne Division. The Bottle Division's variable manufacturing cost is $2, shipping cost is $0.10, and the external sales price is $3. No shipping costs are incurred on sales to the Cologne Division, and the Cologne Division can purchase similar containers in the external market for $2.60. Assume the Bottle Division has no excess capacity. Using the general rule, the transfer price from the Bottle Division to the Cologne Division would be:

A) $2.00.
B) $2.10.
C) $2.60.
D) $2.90.
E) $3.00.