The heating division of pfc international produces a

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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 $16, and its fixed cost per unit is $6. Top management of PFC International would like the Heating Division to transfer 14,570 heating units to another division within the company at a price of $35. The Heating Division is operating at full capacity. Assume that the units being requested are special high-performance units, and that the division's variable cost would be $27 per unit. What is the minimum transfer price that the Heating Division should accept?

Reference no: EM13598133

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