Q16. The Can Division of Swifty Corporation manufactures and sells tin cans externally for $0.60 per can. Its unit variable costs and unit fixed costs are $0.24 and $0.08, respectively. The Packaging Division wants to purchase 50,000 cans at $0.32 a can. Selling internally will save $0.05 a can. Assuming the Can Division is already operating at full capacity, what is the minimum transfer price it should accept?

$0.28

$0.29

$0.69

$0.55