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

Manufacturing: Variable costs per unit $1.00

Fixed costs per unit $5.00

Distribution: Variable costs per unit $0.60

Fixed costs per unit $0.40

The Distribution Division has been operating at a capacity of 4,000,000 units a week and usually purchases 2,000,000 units from the Manufacturing Division and 2,000,000 units from other suppliers at $9.00 per unit.

10) 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 pound of fertilizer is 160% of variable costs?