15. Silvan Company has two divisions. Alpha division manufactures components for $3,000 per unit plus $1,000,000 in fixed costs, which are transferred to Omega division for use in manufacturing the firm’s finished product, which costs an additional $5,000 per unit, plus $3,000,000 in fixed costs. Omega division sells the final product for $10,000 per unit. Both Alpha and Omega divisions have an annual capacity of 4,000 units. Alpha could sell the components on the open market for $3,750. Silvan sets its transfer prices at 10% above market price.

Calculate the transfer price.