The national division of Nero International Company is buying 21,300 widgets from an outside supplier at $71 per unit. Nero Internationals overseas division, which is producing and selling widgets at full capacity (25,900 units), has the following sales and cost structure:

Sales price per unit		$86
Variable cost per unit		64
Fixed cost (at capacity) per unit		20

(a)

Determine the minimum transfer price if the national division buys 5,100 widgets from the overseas division.

Minimum transfer price

$ per unit