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The Heating Division of Marigold International produces a heating element that it sells to its customers for $45 per unit. Its unit variable cost is
The Heating Division of Marigold International produces a heating element that it sells to its customers for $45 per unit. Its unit variable cost is $22, and its unit fixed cost is $8. Top management of Marigold International would like the Heating Division to transfer 15,100 heating units to another division within the company at a price of $27. Assume that the Heating Division has sufficient excess capacity to provide the 15,100 heating units to the other division. What is the minimum transfer price that the Heating Division should accept?
Minimum transfer price | $enter the minimum transfer price in dollars |
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