The Heating Division of Monty International produces a heating element that it sells to its customers for $39 per unit.
Posted: Sun Jul 03, 2022 3:50 pm
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?