Company E has two divisions, Division A and Division B. Division A is currently buying Component X from an external seller for $12. Division B produces Component X and has excess capacity. Using the following data, what would the transfer price per unit if Division A purchased Component X from Division B at the cost plus assuming 24% transfer price?

• Variable cost per unit $6.14
• Fixed cost per unit 1.15
• Division B sales price of Component X 14.5

Company E has two divisions, Division A and Division B. Division A is currently buying Component X from an external seller for $14. Division B produces Component X and has excess capacity. Using the following data, what would the transfer price per unit if Division A purchased Component X from Division B at the full-cost plus assuming 24% transfer price?

• Variable cost per unit $7.13
• Fixed cost per unit 1.89
• Division B sales price of Component X 14.5