Riyadh Corporation has two divisions: A and B. Division A makes SIGMA, which is then transferred to Division B. SIGMA is further processed by Division B and is sold to customers at a price of $175 per u Division A is currently required by Riyadh to transfer its total yearly output of 250,000 units of SIGMA Division B at 120% of full manufacturing costs. Unlimited quantities of SIGMA can be purchased and on the outside market at $100 per unit. The following table gives the manufacturing cost per unit in division A and B for 2010: Direct materials cost Direct manufacturing labor cost Manufacturing overhead cost Total manufacturing cost per unit Division A $15 19 36 $70 Division B $9 23 30 $62 The management in addition supplied the following information: Manufacturing overhead costs in Division A are 25% fixed and 75% variable. Manufacturing overhead costs in Division B are 60% fixed and 40% variable.