M10-13 (Algo) Calculating Cost-Plus Transfer Price (LO 10-6) Medlock Company has two divisions. Wheel and Chassis The Wheel Division manufactures a wheel assembly that the Chassis Division uses. The variable cost to produce this assembly is $4.00 per unit full cost is $5.00. The component sells on the open market for $9.00 What will the transfer price be Medlock uses a pricing rule of variable cost plus 40 percent? (Round your answer to 2 decimal places. Trailer