The Heating Division of Kobe International produces a heating element that it sells to its customers for $45 per unit. Its variable cost per unit is $23, and its fixed cost per unit is $12. 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 $31. 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 $29 per unit (rather than $23). What is the minimum transfer price that the Heating Division should accept?
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