Division S	Direct cost	$18.9
	Fixed overhead absorbed	$6.4
		$25.3
	Standard profit @ 10%	$2.53
	Transfer price	$27.83

Division S has proposed a transfer price of $27.83 per unit, for goods which it supplies to Division R (based on the calculations in the table above).

Division R, the receiving division, can buy externally at $26.4.

If the absorbed overheads above are general in nature, the transfer price needs to be amended between $18.9 and x(?) Enter the amount of x in the answer space below