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Division A produces a component at a variable cost of $60 per unit and incurs fixed costs of $20,000 per month. Division B, the buyer,

Division A produces a component at a variable cost of $60 per unit and incurs fixed costs of $20,000 per month. Division B, the buyer, can purchase the component from external suppliers at $100 per unit. Division A wants a markup of 30% on total costs. Determine the transfer price using the cost-plus method.

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