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5. The Cooling Division of JOY International produces a cooling element that it sells to...

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Accounting

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5. The Cooling Division of JOY International produces a cooling element that it sells to its customers for 582 per unit. Its variable cost per unit is $43, and its fixed cost per unit is $20. Top management of JOY International would like the Cooling Division to transfer 25,000 cooling units to another division within the company at a price of $50. The Cooling Division is operating at full capacity. . What is the minimum transfer price that the Cooling Division should accept? (Besides showing the price please briefly explain - for full credit) (5 points) b. Assume that the Cooling Division has sufficient excess capacity to provide the 25,000 cooling units to the other division. What is the minimum transfer price that the Cooling Division should accept? (Showing the price and please briefly explain - for full credit) (4 points)

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