Transfer pricing.

Dear John, How are you? I hope you are doing well, First of all I would like to thank you for your informative and helpful lectures but, I have three questions as per transfer pricing you said in your lecture that we suppose that we produce many products so, the first question is, 1- in regards to cost plus transfer pricing the cost of transfer its full cost I mean it contains both fixed and variable costs only ? 2nd question is, 2- also sir, you have said that we have just variable costs for example 3, 4,5,6 and 7 Hence we have report CM instead of profit am are right or wrong if wrong please could you explain why? Thank you so much in advance.