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What is the minimum price huntley would accept

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Reference no: EM133127656

Question - Huntley division has the capacity to make 3000 units of an intermediate good that is sold both internally and on the open market for a price of $60 each. To make the product, Huntley incurs $14 of variable cost per unit and $24 of fixed costs per unit. What is the minimum price Huntley would accept for an internal transfer of the 1000 units of the product if the division is operating at 100% capacity?

Reference no: EM133127656

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