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What is the minimum transfer price

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Reference no: EM131691089

The Molding Division of White Corporation manufactures plastic molds and then sells them to customers for $40 per unit. Its variable cost is $15 per unit, and its fixed cost per unit is $5. Management would like the Molding Division to transfer 15,000 of these molds to another division within the company at a price of $23. The molding division is operating at full capacity. What is the minimum transfer price the Molding Division should accept?

Reference no: EM131691089

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