1. The fabrication department has excess capacity to produce 5,000 units of a key circuit board, which has the details below.

   Market price $48

   Variable selling/distribution costs on external sales 5

   Variable manufacturing cost 21

   Fixed manufacturing cost 10

   The electronic assembly department needs 4,500 of these circuit boards. It can buy them externally for $46 each.

   What is the minimum transfer price that would be negotiated for this circuit board (rounded to nearest cent if necessary)?

   	a.	$26.92
   	b.	$26
   	c.	$21.92
   	d.	$21