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Uma Corp. has two divisions: Parts and Assembly. The Parts Division makes Part T2 for sale to outside customers: Production capacity Demand from outside customers

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Uma Corp. has two divisions: Parts and Assembly. The Parts Division makes Part T2 for sale to outside customers: Production capacity Demand from outside customers Per unit data for T2 for outside customers: 25,000 units per month 23,000 units per month Selling price Variable production cost Variable selling cost Allocated fixed cost $20.00 $15.00 $3 $125 The Assembly Division has designed a new product that also uses Part T2. For its new product, the Assembly Division would need 3,200 units of T2 each month, and the Parts Division would not incur variable selling costs for these units. (9.) Assuming the Parts Division would cut back on sales to outside customers in order to supply T2 to the Assembly Division (if necessary), what is the lowest acceptable transfer price from the viewpoint of the selling division? (Do not round intermediate calculations. Round the final numbers to two decimal places.) (A.) $1 per unit

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