Montana Mower Manufacturing Company has three divisions. Engine components are transferred from Components to Assembly. Assembled engines are transferred from Assembly to the Mower Division. Costs for each division are given below. Mowers are sold on a competitive outside market for $125. There are no outside markets for engine components or assembled engines. Division Name Components Assembly Mower Total variable costs $50 per package of components $10 per engine plus transfer price paid to Components $100 per mower plus transfer price paid to Assembly Total division fixed costs $55,000 $55,000 $110,000 This period, Components sends Assembly 5,000 packages of engine components.