BSP has two divisions, Division BIT an IT consultancy and Division UFC a financial consultancy.

Division BIT budgets to provide $5,000$ hours of IT services to Division UFC every quarter, and BSP is in the process of reviewing the transfer price charged for the service. The company has decided that the transfer price should cover $25$ per cent of Division BIT$$s fixed overheads but wishes to ensure that Division UFC$$s decisions about purchasing IT consultancy are made in the best interests of the company.

BSP has a standard mark$-$up on external sales of $20$ per cent on full cost.

The following information is available:

Division BIT $Division UFC $Variable costs per hour$4560$Fixed costs per quarter$100,000250,000$

Which transfer prices, for an hour of IT consultancy provided by Division BIT to Division UFC, would be most likely to achieve BSP$$s objectives?