Division A makes 100 units of a product for a fixed cost of \($200\) and a variable cost of

\($5\) per unit. Division B of the same company purchases the product from Division A. It adds \($3\) per unit and sells the product to an outside buyer for \($13\) per unit. Division A can sell the 100 units of the intermediate product to an outside buyer for \($11\) per unit.

What should be the transfer price? What decentralized decision does Division B reach?

Show why this decision is correct for the entire organization.