Company E has two divisions, Division A and Division B. Division A is currently buying Component X from an external seller for $14. Division B produces Component X and has excess capacity. Using the following data, what would the transfer price per unit if Division A purchased Component X from Division B at the market-based transfer price?

• Variable cost per unit $7
• Fixed cost per unit 1.05
• Division B sales price of Component X 14.5

Company E has two divisions, Division A and Division B. Division A is currently buying Component X from an external seller for $14. Division B produces Component X and has excess capacity. Using the following data, what would the transfer price per unit if Division A purchased Component X from Division B at the cost-based transfer price?

• Variable cost per unit $7.34
• Fixed cost per unit 1.76
• Division B sales price of Component X 14.5

Company E has two divisions, Division A and Division B. Division A is currently buying Component X from an external seller for $13. Division B produces Component X and has excess capacity. Using the following data, what would the transfer price per unit if Division A purchased Component X from Division B at the full-cost-based transfer price?

• Variable cost per unit $6.92
• Fixed cost per unit 1.99
• Division B sales price of Component X 14.5