The annual production capacity is 35000 units and the

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The North Division of Barter Company makes and sells a single product, which is a part used in manufacturing trucks. The annual production capacity is 35,000 units and the variable cost of each unit is $24, Presently the North Division sells 32,000 units per year to outside customers at $40 per unit. The South Division of Barter Company would like to buy 15,000 units a year from North to use in its production. There would be no saving in Variable costs from transferring the units internally rather than selling them externally. Ther lowest acceptable transfer price from the standpoint of the North Division should be closest to?

Reference no: EM13575031

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