Company E has two divisions, Division A and Division B. Division A is currently buying Component X from an external seller for $13. 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 22% transfer price?

• Variable cost per unit $7.34
• Fixed cost per unit 1.8
• Division B sales price of Component X 14.5