Rags-to-Riches Corporation has two divisions, X and Y. Division X sells its product to Division Y. Standard costs for Division X are as follows:

Direct materials	$ 4 per unit
Direct labor	2 per unit
Variable overhead	5 per unit
Fixed overhead	3 per unit
Total	$14 per unit

What is the transfer price for Division X based on standard variable cost plus a markup of 25 percent?

a.$7.50

b.$17.50

c.$13.75

d.$11.00