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The Heating Division of Bramble International produces a heating element that it sells to its customers for $47 per unit. Its unit variable cost is
The Heating Division of Bramble International produces a heating element that it sells to its customers for $47 per unit. Its unit variable cost is $21, and its unit fixed cost is $7. Top management of Bramble International would like the Heating Division to transfer 15,400 heating units to another division within the company at a price of $28. The Heating Division is operating at full capacity. Assume that the units being requested are special high-performance units, and the division's unit variable cost would be $25 (rather than \$21). What is the minimum transfer price that the Heating Division should accept? Minimum transfer price $
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