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The Can Division ofCoronado Industriesmanufactures and sells tin cans externally for $0.80per can. Its unit variable costs and unit fixed costs are $0.24and $0.14, respectively.

The Can Division ofCoronado Industriesmanufactures and sells tin cans externally for $0.80per can. Its unit variable costs and unit fixed costs are $0.24and $0.14, respectively. The Packaging Division wants to purchase 50,000 cans at $0.38a can. Selling internally will save $0.05a can.

Assuming the Can Division is already operating at full capacity, what is the minimum transfer price it should accept?

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