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The Can Division of Concord Corporation manufactures and sells tin cans externally for $1.00 per...

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Accounting

The Can Division of Concord Corporation manufactures and sells tin cans externally for $1.00 per can. Its unit variable costs and unit fixed costs are $0.24 and $0.18, respectively. The Packaging Division wants to purchase 50,000 cans at $0.42 a can. Selling internally will save $0.04 a can. Assuming the Can Division is already operating at full capacity, what is the minimum transfer price it should accept?

$0.96

$0.46

$0.88

$0.58

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