The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division. This casing is also sold to external customers for $45 per unit. Variable costs for the casing are $ 32 per unit and fixed cost is $6 per unit. Cotwold executives would like for the Molding Division to transfer 28,000 units to the Assembly Division at a price of $38 per unit. Assume that the Molding Division is operating at full capacity.

2. Identify the minimum transfer price that the Molding Division will accept.