Bakery Division is currently purchasing organic heavy cream from an outside supplier. The company's Dairy Division, which
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Question:
Bakery Division is currently purchasing organic heavy cream from an outside supplier. The company's Dairy Division, which has no excess capacity, makes and sells organic heavy cream for external customers afa variable cost of $35 per gation and a selling price of $33 per gation. If the Dairy Division begins selling the heavy cream to the Bakery Division, it will use the general transfer pricing rule and will be able to reduce variable cost on internal transfer by $13 per gallon
How much is the minimum transfer price per gallon that the Dairy Division should establish?
(Do not round intermediate calculations. Round the final answer to the nearest two decimal places)
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