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 $3.90 per unit; full cost is $4.90. The component sells on the open market for $8.70. What will the transfer price be if Medlock uses a pricing rule of variable cost plus 35 percent? (Round your answer to 2 decimal places.)