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The fastener division of Carla Vista Fasteners manufactures zippers and then sells them to customers for $7.19 per unit. Its unit variable cost is
The fastener division of Carla Vista Fasteners manufactures zippers and then sells them to customers for $7.19 per unit. Its unit variable cost is $3.36, and its unit fixed cost is $1.15. Management would like the fastener division to transfer 11,100 of these zippers to another division within the company at a price of $3.36. The fastener division could avoid $0.23 per zipper of variable packaging costs by selling internally. Determine the minimum transfer price. (a) Assuming the fastener division is not operating at full capacity. (Round answer to 2 decimal places (eg., 10.50).) Minimum transfer price 3.13 (b) Assuming the fastener division is operating at full capacity. (Round answer to 2 decimal places (e.g., 10.50).) Minimum transfer price $
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