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The Heating Division of Ayayai International produces a heating element that it sells to its customers for $38 per unit. Its unit variable cost is
The Heating Division of Ayayai International produces a heating element that it sells to its customers for $38 per unit. Its unit variable cost is $20, and its unit fixed cost is $5. Top management of Ayayai International would like the Heating Division to transfer 14,500 heating units to another division within the company at a price of $25. The Heating Division is operating at full capacity. Assume that the units being requested are special highperformance units, and the division's unit variable cost would be $23 (rather than $20 ). What is the minimum transfer price that the Heating Division should accept
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