The Heating Division of Flounder International produces a heating element that it sells to its

customers for $$39$ per unit. Its unit variable cost is $$21,$ and its unit fixed cost is $$7.$ Top

management of Flounder International would like the Heating Division to transfer $14,900$ heating

units to another division within the company at a price of $$32.$ The Heating Division is operating at

full capacity. What is the minimum transfer price that the Heating Division should accept?

Minimum transfer price