Transfer pricing

Good morning, I’ll be grateful for your help with the question on transfer pricing. Here it goes.

In a company with a divisionalised structure, Division A transfers its output to Division B. Division A produces just one item, Component X. Division B makes and sells an end product that requires one unit of Component X.
Marginal cost of production in Division A $8 per unit of X
Fixed overhead cost of production $3 per unit of X
Market price in the external market $16 per unit of X
Division B contribution from further processing Component X $25 per unit of X

Division A is not working at full capacity, and can meet in full the external market demand and the demand from Division B for internal transfers.

What should be the minimum transfer price per unit and the maximum transfer price per unit of Component X in this situation?

A. Min TP $8, max TP $16
B. Min TP $8, max TP $25
C. Min TP $11, max TP $16
D. Min TP $11, max TP $25

According to the answer to this question, the right one is B with min TP $8 and max TP $25. While I agree with the min TP of $8 as it is a marginal cost for Division A (because of unlimited production capacity and limited external demand), I dont agree with the max TP of $25. According to your lecture about transfer prices the max TP is the lower of the net marginal revenue which is in this case $25 and the minimum market price which is $16. So the max TP should be $16 shouldn’t it? Please advise. Thank you. Anna