Problem 2
Profit center A produces 4 products for sales as folllows
	AA1	AA2	AA3	AA4
market price per unit	150	146	140	130
variable cost per unit	130	100	90	85
labour hours required per unit	3	4	2	3
market demand in units	2800	2500	2300	1600
Product AA4 can be transfered to Profit Center G at the maximum 2,500 units.
Profit Center G can purchase Product AA4 from the market at USD125 per unit.
Calculate the transfer price of Product AA4 to Profit Center G. What is the transfer price?
The total number of labour hours in Profit Center A is 20,000 hours.