Elba Division of Haimes Industries manufactures product #$54$B$89.$ Three$-$fourths of the production is transferred to the Crete Division of Haimes Industries; the remainder is sold externally for $$67$ per unit. The following information is available about product #$54$B$89$: Elba Division of Haimes Industries manufactures product #$54$B$89.$ Three$-$fourths of the production is transferred to the Crete Division of Haimes Industries; the remainder is sold externally for $$67$ per unit. The following

information is available about product #$54$B$89$:

Determine the transfer price under each of the following methods:

Total production annually $1,200,000$ units

Variable production costs $$40$

Variable selling costs $($includes $$4$ per unit in advertising cost$)$ $$16$

Fixed overhead $($allocated on the basis of units of production$)$ $$5,040,000$

Fixed selling costs $$6,720,000$

Determine the transfer price under each of the following methods:

$(1)$ total variable cost Answer $1$

$0$

per unit

$(2)$ full production cost Answer $2$

$0$

per unit

$(3)$ total variable production cost plus allocated fixed selling costs Answer $3$

$0$

per unit

$(4)$ market price Answer $4$

$0$

per unit