Indigo Company's Small Motor Division manufactures a number of small motors used in household and office appliances. The Household Division of Indigo then assembles and packages such items as blenders and juicers. Both divisions are free to buy and sell any of their components internally or externally. The following costs relate to small motor LN233 on a per unit basis.

Unit fixed cost		$ 7
Unit variable cost		8
Unit selling price		32

(a)

Assuming that the Small Motor Division has excess capacity, compute the minimum acceptable price for the transfer of small motor LN233 to the Household Division. (Round answer to 2 decimal places, e.g. 10.50.)

Minimum transfer price

$enter the minimum transfer price per unit in dollars

per unit