JayCee, Inc., has several divisions around the world. Division U (in the United States) purchases a component from Division C (in Canada). Division C's manufacturing cost for the component is $25.00. There is no external market for the component transferred from Division C to Division U. The freight and insurance on the item amount to $3.00; however, commissions of $3.75 need not be paid. The component transferred is used to manufacture another productit is not resold. What is the transfer price, calculated using the cost-plus method? a. $31.75 b. $25.00 c. $28.00 d. $22.25