Find out the minimum acceptable price for the transfer

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Reference no: EM132952856

Chen Company's Small Motor Division manufactures a number of small motors used in household and office appliances. The Household Division of Chen then assembles and packages such items as blenders and juicers. Both divisions are free to buy and sell any of their components internally or externally.

The following costs relate to small motor LN233 on a per unit basis.

Fixed cost per unit$4.85

Variable cost per unit$10.85

Selling price per unit$35.20

Question 1: Find out the minimum acceptable price for the transfer of smal motor LN233 to the house hold division

Reference no: EM132952856

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