$231$ TM plc makes components which it sells internally to its subsidiary RM Ltd$,$ as well as to its own external market.

The external market price is $$24\mathrm{.}00$ per unit, which yields a contribution of $40\%$ of sales. For external sales, variable costs include $$1\mathrm{.}50$ per unit for distribution costs, which are not incurred on internal sales.

TM plc has sufficient capacity to meet all of the internal and external sales. The objective is to maximise group profit.

At what unit price should the component be transferred to RM Ltd $($to $2$ decimal places$)?$

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