Determining Market-Based and Negotiated Transfer Prices Carreker, Inc., has a number of divisions, including the Alamosa Division, producer of surgical blades, and the Tavaris Division, a manufacturer of medical instruments. Alamosa Division produces a 2.4 cm steel blade that can be used by Tavaris Division in the production of scalpels. The market price of the blade is $21. Cost information for the blade is: Variable product cost $ 9.60 Fixed cost 5.10 Total product cost $14.70 Tavaris needs 15,000 units of the 2.4 cm blade per year. Alamosa Division is at full capacity (84,000 units of the blade)