There are two profit centres, A and B. Profit centre A transfers a product to profit centre B, but could also sell the product in an external market at a price of $30. The marginal cost of making the product in profit centre A is $8 per unit and the full cost is $14 per unit. There would be a variable cost of $1 per unit for sales and distribution to customers in the external market, but no such costs for internal transfers.
To avoid disputes between the profit centre managers, what should be the transfer price for the product?
$ _______