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What is minimum transfer price that heating division accept

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Reference no: EM133046803

Problem - The Heating Division of Kobe International produces a heating element that it sells to its customers for $45 per unit. Its variable cost per unit is $24, and its fixed cost per unit is $6. Top management of Kobe International would like the Heating Division to transfer 15,200 heating units to another division within the company at a price of $30. The Heating Division is operating at full capacity. What is the minimum transfer price that the Heating Division should accept?

Reference no: EM133046803

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