The national division of Pharoah International Company is buying 20,500 widgets from an outside supplier at $72 per unit. Pharoah Internationals overseas division, which is producing and selling widgets at full capacity (25,100 units), has the following sales and cost structure:

Sales price per unit		$87
Variable cost per unit		69
Fixed cost (at capacity) per unit		17

(a)

Determine the minimum transfer price if the national division buys 4,760 widgets from the overseas division.

Minimum transfer price

$enter the minimum transfer price per unit in dollars per unit

(b)

The parts of this question must be completed in order. This part will be available when you complete the part above.