The can division of fruit products inc manufactures and

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Reference no: EM13607460

The Can Division of Fruit Products Inc. manufactures and sells tin cans externally for $0.30 per can. Its unit variable costs and unit fixed costs are $0.12 and $0.04, respectively. The Packaging Division wants to purchase 50,000 cans at $0.16 a can. Selling internally will save $0.01 a can. Assuming the Can Division has sufficient capacity, what is the minimum transfer price it should accept?

Reference no: EM13607460

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