Alpha and Beta are divisions within the same company. The managers of both divisions are evaluated based on their own division's return on investment (ROI). Assume the following information relative to the two divisions:

Case1234

Alpha Division:

Capacity in units 53,000292,000102,000 200,000

Number of units now being sold to

outside customers 53,000292,00079,000200,000

Selling price per unit to outside

customers $96$39$63$44

Variable costs per unit $60 $19 $40 $29

Fixed costs per unit (based on

capacity) $21$5$20$5

Beta Division:

Number of units needed annually10,60073,00018,00062,000

Purchase price now being paid to

an outside supplier $90$36$63*

*Before any purchase discount

Managers are free to decide if they will participate in any internal transfers. All transfer prices are negotiated.

Required

Refer to case 4 shown above. Assume that Beta Division wants Alpha Division to provide it with 62,000 units of a different product from the one Alpha Division is producing now. The new product would require $23 per unit in variable costs and would require that Alpha Division cut back production of its present product by 31,000 units annually. What is the lowest acceptable transfer price from Alpha Division's perspective