Question: BE 2 1 . 7 ( LO _ 4 ) , AP The Heating Division of Kobe International produces a heating element that it sells
BELO AP The Heating Division of Kobe International produces a heating element that it sells to its customers for $ per unit. Its variable cost per
unit is $ and its fixed cost per unit is $ Top management of Kobe International would like the Heating Division to transfer oo heating units to another
division within the company at a price of $ The Heating Division is operating at full capacity. What is the minimum transfer price that the Heating Division
should accept?
BELO AP Use the data from but assume that the Heating Division has sufficient excess capacity to provide the oo heating units to the
other division. What is the minimum transfer price that the Heating Division should accept?
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