Transfer Pricing with Market Price, Cost-Plus Method, and External Market Price: A company has two divisions: Division A, which produces a component, and Division B, which uses the component in its final product. Division A has variable costs of $40 per unit and fixed costs of $15,000 per month. Division B can buy the component from external suppliers for $60 each. Determine the transfer price that maximizes the company's overall profit if Division A can sell the component in the external market for $55 each.