A company called Doing Dangerous Cooking in the Citchen $($DDCC$)$ benefitted this year from having a "reliable" supplier relationship for the flax they use in their Flacky crackers. Assume that the supplier is not a grower, but a distributor that purchases flax from growers and sells it to food processors like DDCC$.$ Further assume that the supplier decides to purchase DDCC to establish even stronger relationships with a major purchaser of flax. One final assumption: the spread between the supplier's purchase cost of flax and its selling price to customers is expected to remain at approximately $7$ cents per pound.

After the purchase is complete, DDCC is expected to purchase $100\%$ of its flax from its new parent company. The parent company will continue to sell to a range of customers, but guarantees that it will supply $100\%$ of the flax DDCC needs.

The flax dealing unit of the parent company and DDCC will both be considered separate investment centers for the parent company. How should the transfer price for flax be determined? Explain your answer.