The Drum Sticks Division sells all of its output to the Drum Kit Division of the company. The only product of the Drum Stick Division is drum sticks that the Drum Kit Division uses in making kits. The retail price of the sticks is $12 per stick. Each kit completed by the Drum Kit Division requires 4 sticks. Production quantity and cost data for the period are as follows: Number of drum sticks Direct materials Direct labor Factory overhead (30% is variable) Operating expenses (20% is variable) 20,000 $90,000 70,000 60,000 100,000 Calculate the transfer price for a drum stick using: Variable costs