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The Can Division of Bonita Industries manufactures and sells tin cans externally for $1.40 per can. Its unit variable costs and unit fixed costs are

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The Can Division of Bonita Industries manufactures and sells tin cans externally for $1.40 per can. Its unit variable costs and unit fixed costs are $0.24 and $0.13, respectively. The Packaging Division wants to purchase 50,000 cans at $0.37 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? $0.79 $1.03 $0.42 $1.35

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