Blackoil Corp. has two divisions, Refining and Production. The company's primary product is Clean Oil. Each division's costs are provided below:

Refining:	Variable costs per litre of oil	$30
	Fixed costs per litre of oil	$24
Production:	Variable costs per litre of iol	$ 6
	Fixed costs per litre of oil	$ 4

The Production Division is able to sell the oil to other areas for $24 per litre. The Refining Division has been operating at a capacity of 80,000 barrels a day, using oil from the Production Division and oil purchased from other suppliers. The Refining Division usually purchases 50,000 barrels of oil, on average, from the Production Division and 30,000 barrels, on average, from other suppliers at $40 per barrel. QUESTION: What is the transfer price per litre from the Production Division to the Refining Division assuming the method used to place a value on each barrel of oil is 120% of full costs?

	A)	$9.50
	B)	$16.80
	C)	$12.00
	D)	$12.50
	E)	$7.20