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The Heating Division of Kobe International produces a heating element that it sells to its customers for $46 per unit. Its variable cost per unit
The Heating Division of Kobe International produces a heating element that it sells to its customers for \$46 per unit. Its variable cost per unit is $29, and its fixed cost per unit is $11. Top management of Kobe International would like the Heating Division to transfer 15,100 heating units to another division within the company at a price of $35. The Heating Division is operating at full capacity. What is the minimum transfer price that the Heating Division should accept? Minimum transfer price The Heating Division of Kobe International produces a heating element that it sells to its customers for $38 per unit. Its variable cost per unit is $30, and its fixed cost per unit is $7. Top management of Kobe International would like the Heating Division to transter 15,200 heating units to another division within the company at a price of $34. The Heating Division is operating at full capacity: Assume that the units being requested are special high-performance units and that the division's variable cost would be $31 per unit (rather than \$30). What is the minimum transfer price that the Heating Division should accept? Minimum transfer price
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