Q 8

Homer Glen Division has the capacity to make 3,000 units of an intermediate good that is sold both internally and on the open market for a price of $56 each. To make the product, Homer Glen incurs $12 of variable cost per unit and $24 of fixed costs per unit. What is the minimum price Homer Glen would accept for an internal transfer of 1,000 units of the product if the division is operating at 50% capacity?