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Division A has the capacity for making 2,725 motors per month and regularly sells 1,900 motors, for $104 per motor each month, on the intermediate
Division A has the capacity for making 2,725 motors per month and regularly sells 1,900 motors, for $104 per motor each month, on the intermediate market at a contribution margin of $64 per motor. A sister division, Division B, would like to obtain 1,625 motors each month from Division A. In computing a transfer price per motor using the transfer pricing formula, what is the minimum transfer price? Input your answer as a number with two decimal places (for example, 12.34)
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