The Heating Division of Monty International produces a heating element that it sells to its customers for $39 per unit.

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answerhappygod
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The Heating Division of Monty International produces a heating element that it sells to its customers for $39 per unit.

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The Heating Division of Monty International produces aheating element that it sells to its customers for $39 perunit. Its unit variable cost is $22, and its unit fixed cost is$11. Top management of Monty International would like theHeating Division to transfer 15,200 heating units toanother division within the company at a price of $29. Assume thatthe Heating Division has sufficient excess capacity to providethe 15,200 heating units to the other division. What isthe minimum transfer price that the Heating Division shouldaccept?
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