Woodstones Southern Division is currently purchasing a part from an outside supplier for $26 per unit. The company's Northern Division, which has excess capacity, makes and sells this part for external customers at a variable cost of $19 and a selling price of $29. If Northern begins sales to Southern, it will use the general transfer-pricing rule and will be able to reduce variable cost on internal transfers by $2.

If sales to outside will not be affected, Northern would establish a transfer price of $___

Please show all work

Here is my work so far and not sure if I am right.

Transfer price = Additional outlay per unit + opportunity cost of transfer

Transfer price = (19 2) + (29 - 19) = $27