The Bathtub Division of Ayayai Plumbing Corporation has recently approached the Faucet Division with a proposal. The Bathtub Division would like to make a special "ivory" tub with gold-plated fixtures for the company's 50-year anniversary. It would make only 6,200 of these units. It would like the Faucet Division to make the fixtures and provide them to the Bathtub Division at a transfer price of $194. If sold externally, the estimated unit variable cost would be $178. However, by selling internally, the Faucet Division would save $7 per unit on variable selling expenses. The Faucet Division is currently operating at full capacity. Its standard unit sells for $62 per unit and has variable costs of $45. Compute the minimum transfer price that the Faucet Division should be willing to accept.

Minimum transfer price

$enter the minimum transfer price in dollars

Should they accept this offer?

They select an option should acceptshould not accept this offer.