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Knowledge Check The Gear Division of Bicycle Bob produces a 12-speed gear that it...

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Accounting

Knowledge Check
The Gear Division of Bicycle Bob produces a 12-speed gear that it sells to its customers for $21 per unit. Its unit variable cost is $4.55, and its unit fixed cost is $3.52. Top management of Bicycle Bob would like the Gear Division to transfer 4,000 gears to another division within the company at a price of $19. The Gear Division has no excess capacity to provide the units. What is the minimum transfer price that the Gear Division should accept? (Round answer to 2 decimal places (e.g.,52.75).)
Minimum transfer price per unit
$
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