The Can Division ofSheffield Corp.manufactures and sells tin cans externally for $0.90per can. Its unit variable costs and unit fixed costs are $0.24and $0.13, respectively. The Packaging Division wants to purchase 50,000 cans at $0.37a can. Selling internally will save $0.03a can.

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

$0.24

$0.21

$0.34

$0.37