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The Engine Division of the Taylor Corporation sells small engines to the outside market at a selling price of $150 per engine. The Engine Division
The Engine Division of the Taylor Corporation sells small engines to the outside market at a selling price of $150 per engine. The Engine Division is currently operating at a capacity of 49,750 engines per year and is currently selling 35,050 engines annually. The Snowmobile Division of the Taylor Corporation currently purchases 22,000 engines from an external supplier at a cost of $142 per engine. The variable cost of producing an engine is $93. In computing a transfer price per motor using the transfer pricing formula, what would be the lost contribution margin per unit? Input your answer as a number with two decimal places (for example, 12.34). Your
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