Question: What is the correct answer? Please show your work and help me understand!! The Heating Division of Kobe International produces a heating element that it

What is the correct answer? Please show your work and help me understand!!

The Heating Division of Kobe International produces a heating element that it sells to its customers for $40 per unit. Its variable cost per unit is $25, and its fixed cost per unit is $8. Top management of Kobe International would like the Heating Division to transfer 15,100 heating units to another division within the company at a price of $35. The Heating Division is operating at full capacity. Assume that the units being requested are special high-performance units and that the division's variable cost would be $23 per unit (rather than $25). What is the minimum transfer price that the Heating Division should accept

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