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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
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 $20, and its fixed cost per unit is $5. Top management of Kobe International would like the Heating Division to transfer 14,500 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? Minimum transfer price $
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