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The machining division of Blossom International has a capacity of 2,000 units. Its sales and cost data are: The machining division is currently selling 1,800
The machining division of Blossom International has a capacity of 2,000 units. Its sales and cost data are: The machining division is currently selling 1,800 units to outside customers, and the assembly division of Blossom International wants to purchase 400 units from machining. If the transaction takes place, the variable selling costs per unit on the units transferred to assembly will be $0 /unit, and not $3 /unit. What should be the transfer price in order not to affect the machining division's current profit? (Round answer to 2 decimal places e.g. 5.25.)
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