Question - Penrith Chocolate Company makes internal transfers at 180% of full cost. The Dairy Milk Division purchases 3000 litres of milk per day, on average, from a local supplier, who delivers the milk for $3 per litre via an external shipper. To reduce costs, the company located an independent supplier in Tasmania who is willing to sell 3000 litres at $2 each, delivered to Penrith Chocolate Company's Shipping Division in Penrith. The company's Shipping Division has excess capacity and can ship the 3000 litres at a variable cost of $0.25 per litre. What is the total cost to Penrith Chocolate Company if the milk is purchased from the local supplier?