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What is the minimum transfer price

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Question - The Heating Division of Kobe International produces a heating element that it sells to its customers for $46 per unit. Its variable cost per unit is $29, and its fixed cost per unit is $11. Top management of Kobe International would like the Heating Division to transfer 15,100 heating units to another division within the company at a price of $35. The Heating Division is operating at full capacity. What is the minimum transfer price that the Heating Division should accept?

Reference no: EM132532264

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