Illustrate what is the minimum transfer price

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Reference no: EM13128012

The Heating Division of PFC International produces a heating element that it sells to its customers for $42 per unit. Its variable cost per unit is $19, and its fixed cost per unit is $10. Top management of PFC International would like the Heating Division to transfer 15,000 heating units to another division within the company at a price of $29. The Heating Division is operating at full capacity. What is the minimum transfer price that the Heating Division should accept?

Reference no: EM13128012

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