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externally for $ 0 . 6 0 per container. Its unit variable costs and unit fixed costs are $ 0 . 2 4 and $

externally for $0.60 per container. Its unit variable costs and unit fixed costs are $0.24 and $0.08, respectively. The Packaging Division wants to purchase 50,000 containers at $0.32 per unit. Selling internally will save $0.02 a container.
Assuming that the Can Division has sufficient capacity, what is the minimum transfer price it should accept?
A) $0.22
B) $0.32
C) $0.24
D) $0.30
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