Overton Company uses cost-based transfer pricing. Its Food Processing Division has a standard variable cost of $10.00 per case and allocated xed overhead of $3.00. The Processing Division, which has excess capacity. sells its output to external customers for $13.50 per case. If Overton uses variable costs as its base, the transfer price charged to its Retail Division should be: Multiple Choice 0 $16.50. $13.50 plus a markup. $10.00 plus a markup. O 0 $13.00 plus a markup. O