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 oil	$ 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, purchasing 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 assuming the method used to place a value on each barrel of oil is 175% of variable costs?

	A)	$17.50
	B)	$10.50
	C)	$24.50
	D)	$12.50
	E)	$12.00