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The Can Division of Tin can Corporation manufactures and sells tin cans externally for $0.50...

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Accounting

The Can Division of Tin can Corporation manufactures and sells tin cans externally for $0.50 per can. Its unit variable costs and unit fixed costs are $0.24 and $0.07, respectively. The Packaging Division wants to purchase 50,000 cans at $0.31 a can. Selling internally will save $0.02 a can. Assuming the Can Division has sufficient capacity, what is the minimum transfer price it should accept?

$0.31

$0.29

$0.22

$0.24

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