7. A division of international company operates as a profit center. It manufactures widgets and sells its components to other widget manufacturers. The present price of $25 per component is the basis for a negotiation with the manufacturing division, which has been purchasing 250,000 units per year from other sources. The external price is $24 per component due to the large number purchased. The component division has adequate capacity to provide the needs of the manufacturing division. However, the manufacturing division does not want to pay the full price of $25. The components' unit cost is presented below: Direct materials $ 9 Direct labor 7 Variable overhead 3 Fixed overhead 2 Total cost 21 Calculate the transfer price based on variable cost and full cost, as well as the appropriate range of prices