What is the minimum transfer price that the heating division

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Question: The Heating Division of Blue Spruce International produces a heating element that it sells to its customers for $40 per unit. Its unit variable cost is $29, and its unit fixed cost is $12. Top management of Blue Spruce International would like the Heating Division to transfer 14,800 heating units to another division within the company at a price of $31. The Heating Division is operating at full capacity. Assume that the units being requested are special high-performance units, and the division's unit variable cost would be $30 (rather than $29). What is the minimum transfer price that the Heating Division should accept? Minimum transfer price

Reference no: EM133445561

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