What is minimum transfer price food division should accept

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Reference no: EM131294397

Management of a local catering company would like the Food Division to transfer 10,000 containers of its final product to the Restaurant Division for $39. The Food Division sells the product to customers for $98 per unit. The Food Division's variable cost per unit is $37 and its fixed cost per unit is $25. If the Food Division has 10,000 units of available capacity, what is the minimum transfer price the Food Division should accept?

Reference no: EM131294397

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