The Heating Division of Whispering Winds International produces a heating element that it sells to its customers for $40 per unit. Its unit variable cost is $20, and its unit fixed cost is $8. Top management of Whispering Winds International would like the Heating Division to transfer 14,500 heating units to another division within the company at a price of $30. The Heating Division is operating at full capacity. Assume that the units being requested are special high-performance units, and the divisions unit variable cost would be $28 (rather than $20). What is the minimum transfer price that the Heating Division should accept?

Minimum transfer price

$enter the minimum transfer price in dollars