Genesis Scents 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.  The maximum amount the Cologne Division would be willing to pay for each bottle transferred would be:

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


Answer: B

Business

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