Frances Industries has two divisions (Parts and Tools).

The Tools Division wants to purchase a part from the Parts Division to use in manufacturing a new product.

Information about the requested part:

Parts Division

Capacity (per year)

150,000

Sales price to outside parties

50.00

Variable manufacturing cost/part

20.00

There are no variable selling costs at Frances Industries.

Q) Assume instead that the Parts Division is currently selling 140,000 parts to outside customers?

What is the minimum price the Parts Division would want to charge?