The Can Division of Fruit Products Inc. 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 $0.02 a can.

Assuming the Can Division has sufficient capacity, what is the minimum transfer price it should accept?

$0.22

$0.30

$0.24

$0.32