1. Assuming a company uses a cost-based pricing system for transfer pricing, which of the following items would NOT be used?

		variable-costing only
		full-costing plus profit only
		full-costing only
		fixed-costing only

2. Luxe Big does have excess capacity to produce Product XX. The division can sell Product XX for $10 per unit outside the company. Variable costs are $6 per unit. Luxe Small wants to purchase Product XX from Luxe Big to use in Product ZZ. The selling price of Product ZZ is $25 per unit and variable costs to finish the product after the transfer are $12 per unit. An outside supplier will sell Product XX for $12. What is the minimum transfer price for Luxe Big?

		$4 per unit
		$6 per unit
		$10 per unit
		$12 per unit