Calculate the transfer price.

Gruber Corporation manufactures the components of its products at its Parts Manufacturing division. Each component costs $15 in variable costs to produce. The components are transferred to the Assembly division, where they are assembled into the final product, which costs $30 per unit, plus the cost of components from the Parts Manufacturing division. Fixed costs are $200,000 for Parts Manufacturing and $350,000 for Assembly. The Parts Manufacturing division could sell the components on the market for $25. Gruber sets its transfer prices at variable cost plus 20%. Calculate the transfer price.

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