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The machining division of ITA International has a capacity of 2,130 units. Its sales and cost data are:
Selling price per unit $75Variable manufacturing costs per unit 20Variable selling costs per unit 4Total fixed manufacturing overhead 197,000
The machining division is currently selling 1,910 units to outside customers, and the assembly division of ITA International wants to purchase 350 units from machining. If the transaction takes place, the variable selling costs per unit on the units transferred to assembly will be $0/unit, and not $4/unit. What should be the transfer price in order not to affect the machining division's current profit?(Round answer to 2 decimal places e.g. 5.25.)
Minimum transfer price
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