The answer is not $40 The Heating Division of Swifty International produces a heating...
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Accounting
The answer is not $40
The Heating Division of Swifty International produces a heating element that it sells to its customers for $40 per unit. Its unit variable cost is $25, and its unit fixed cost is $8. Top management of Swifty 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. Assume that the units being requested are special high-performance units, and the division's unit variable cost would be $27 (rather than $25 ). What is the minimum transfer price that the Heating Division should accept? Minimum transfer price $
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