The Heating Division of Sheffield International produces a heating element that it sells to its customers for $$44$ per unit. Its unit

variable cost is $$27,$ and its unit fixed cost is $$5.$ Top management of Sheffield International would like the Heating Division to transfer

$15,000$ heating units to another division within the company at a price of $$28.$ Assume that the Heating Division has sufficient excess

capacity to provide the $15,000$ heating units to the other division. What is the minimum transfer price that the Heating Division should

accept?

Minimum transfer price $

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