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Division T of Clocker Company makes a timer which it sells for $30 to outside customers. The division has supplied the following data concerning the
Division T of Clocker Company makes a timer which it sells for $30 to outside customers. The division has supplied the following data concerning the timer: Monthly capacity 12,000 timers Variable cost per unit $15 per timer Fixed cost per unit $10 per timer Division Sof Clocker Company is currently buying 5,000 similar timers each month from an overseas supplier at $27 each. Division S would like to acquire its timers from Division T if the price is right. Suppose that Division T can sell only 10,000 timers to outside customers. What is the lowest acceptable transfer price from the viewpoint of the selling division
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