Company La Estrella de Beln obtains the following information from its accounting records related to its product:

Finished product Direct Labor $ 8.00 / unit

Direct Materials $ 15.00 / unit

Indirect Fixed Costs $ 6.00 / unit

Indirect Variable Costs $ 8.00 / unit

The company internally transfers this product to another of its divisions. It also sells this product to external customers for $ 35. What will be the transfer price if the company uses the variable cost method?

a.$ 31

b. $ 23

c. $ 35

d. $ 25