If the food division is currently operating at full capacity

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Reference no: EM131296109

Management of a local catering company would like the Food Division to transfer 10,000 containers of its final product to the Restaurant Division for $35. The Food Division sells the product to customers for $90 per unit. The Food Division's variable cost per unit is $33 and its fixed cost per unit is $21.

If the Food Division is currently operating at full capacity, what is the minimum transfer price the Food Division should accept?

Reference no: EM131296109

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