Question
Chen Company's Small Motor Division manufactures a number of small motors used in household and office appliances. The Household Division of Chen then assembles and
Chen Company's Small Motor Division manufactures a number of small motors used in household and office appliances. The Household Division of Chen then assembles and packages such items as blenders and juicers. Both divisions are free to buy and sell any of their components internally or externally. The following costs relate to small motor LN233 on a per unit basis.
Fixed cost per unit$4.85Variable cost per unit$10.85Selling price per unit$35.20
I need help figuring out the minimum acceptable price for the transfer of smal motor LN233 to the house hold division
we would assume that small motor diviision has excess capacity
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