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The heating division of klm international produces a

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The Heating Division of KLM International produces a heating element that it sells to its customers for $40 per unit. Its variable cost per unit is $18, and its fixed cost per unit is $11. Top management of KLM International would like the Heating Division to transfer 15,430 heating units to another division within the company at a price of $35. The Heating Division is operating at full capacity. What is the minimum transfer price that the Heating Division should accept?

Reference no: EM13579759

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