What is the minimum price-accept for an internal transfer

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Reference no: EM13792294

Homer Glen Division has the capacity to make 3,000 units of an intermediate good that is sold both internally and on the open market for a price of $63 each. To make the product, Homer Glen incurs $14 of variable cost per unit and $24 of fixed costs per unit. What is the minimum price Homer Glen would accept for an internal transfer of 1,000 units of the product if the division is operating at 100% capacity?

$14.00 each

$38.00 each

$63.00 each

$60.00 each

Reference no: EM13792294

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