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Division are assumed to be the same over the range of 6 , 0 0 0 - 1 1 , 0 0 0 units. The

Division are assumed to be the same over the range of 6,000-11,000 units. The fixed costs for the Fabrication Division are assumed to be $12.00 per unit at 11,000 units.
Compressor's costs per compressor are:
Direct materials $22.00
Direct labor $21.00
Variable overhead $7.00
Division fixed costs $8.00
Fabrication's costs per completed air conditioner are:
Direct materials $160.00
Direct labor $66.50
Variable overhead $20.00
Division fixed costs $8.00
What is the transfer price per compressor from the Compressor Division to the Fabrication Division if the method used to place a value on each compressor is 115% of variable costs?
A. $51.50
B. $34.00
C. $45.00
D. $57.50
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