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The Heating Division of Ayayai International produces a heating element that it sells to its customers for $$40$ per unit. Its unit variable cost is $$28,$ and its unit fixed cost is $$12.$ Top management of Ayayai International would like the Heating Division to transfer $14,500$ heating units to another division within the company at a price of $$31.$ Assume that the Heating Division has sufficient excess capacity to provide the $14,500$ heating units to the other division. What is the minimum transfer price that the Heating Division should accept?

Minimum transfer price

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