What is the minimum price aurora would accept

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Reference no: EM134008104

Problem

Aurora Division has the capacity to make 1,500 units of an intermediate good that is sold both internally and on the open market for a price of $32 each. To make the product, Aurora incurs $7 of variable cost per unit and $12 of fixed costs per unit. Get the instant assignment help.

What is the minimum price Aurora would accept for an internal transfer of 1,000 units of the product if the division is operating at 100% capacity?

Reference no: EM134008104

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