Division Alpha Can Purchase a Required Part from an Outside

Division Alpha can purchase a required part from an outside supplier at $35.Division Beta will supply the part at a transfer price of $38.50.Division Alpha's manager should

A) pay the $38.50 price to Division Beta.
B) tell his immediate supervisor that Division Beta is being unreasonable.
C) negotiate an appropriate transfer price with the manager of Division Beta.
D) buy from the outside supplier.