The Heating Division of Kobe International produces a heating element that it sells to its customers for $$44$ per unit. Its variable cost per unit is $$20,$ and its fixed cost per unit is $$10.$ Top management of Kobe International would like the Heating Division to transfer $14,800$ heating units to another division within the company at a price of $$32.$ The Heating Division is operating at full capacity. What is the minimum transfer price that the Heating Division should accept?

Minimum transfer price