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The Heating Division of Kobe International produces a heating element that it sells to its customers for $48 per unit. Its unit variable cost is
The Heating Division of Kobe International produces a heating element that it sells to its customers for $48 per unit. Its unit variable cost is $21, and its unit fixed cost is $6. Top management of Kobe International would like the Heating Division to transfer 14,800 heating units to another division within the company at a price of $25. The Heating Division is operating at full capacity. What is the minimum transfer price that the heating division should accept?
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