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Timekeeper Corporation has two? divisions, Distribution and Manufacturing. The? company's primary product is highminus?end watches. Each? division's costs are provided?below: Manufacturing ?: Variable costs per

Timekeeper Corporation has two? divisions, Distribution and Manufacturing. The? company's primary product is

highminus?end

watches. Each? division's costs are provided?below:

Manufacturing?:

Variable costs per unit $ 3.98$3.98

Fixed costs per unit $ 11.90$11.90

?Distribution:

Variable costs per unit $ 1.30$1.30

Fixed costs per unit $ 1.10$1.10

The Distribution Division has been operating at a capacity of

4 comma 007 comma 0004,007,000

units a week and usually purchases

2 comma 003 comma 5002,003,500

units from the Manufacturing Division and

2 comma 003 comma 5002,003,500

units from other suppliers at

$ 10.00$10.00

per unit.

What is the transfer price per watch from the Manufacturing Division to the Distribution? Division, assuming the method used to place a value on each transfer is

125125?%

of full? costs?

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