The Heating Division of Sheridan International produces a heating element that it sells to its...
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The Heating Division of Sheridan International produces a heating element that it sells to its customers for $43 per unit. Its variable cost per unit is $23, and its fixed cost per unit is $10. Top management of Sheridan International would like the Heating Division to transfer 15,100 heating units to another division within the company at a price of $27. 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 $25 per unit (rather than $23). What is the minimum transfer price that the Heating Division should accept?
Minimum transfer price
$
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