Current Attempt in Progress

The Can Division of Crane Company manufactures and sells recyclable containers externally for $$0\mathrm{.}59$ per container. Its unit variable costs and unit fixed costs are $$0\mathrm{.}24$ and $$0\mathrm{.}06,$ respectively. The Packaging Division wants to purchase $50,000$ containers at $$0\mathrm{.}32$ per unit. Selling internally will save $$0\mathrm{.}02$ a container.

Assuming that the Can Division has sufficient capacity, what is the minimum transfer price it should accept?

$$0\mathrm{.}32$

$$0\mathrm{.}30$

$$0\mathrm{.}24$

$$0\mathrm{.}22$