Claremont division has the capacity to make 3000 units of

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Reference no: EM13591999

Claremont Division has the capacity to make 3,000 units of an intermediate good that is sold both internally and on the open market for a price of $28 each. To make the product, Claremont incurs $5 of variable cost per unit and $12 of fixed costs per unit. What is the minimum price Claremont would accept for an internal transfer of the 1,000 units of the product if the division is operating at 50% capacity?

Reference no: EM13591999

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