The Can Division of Fruit Products Inc

Multiple Choice

The Can Division of Fruit Products Inc.manufactures and sells tin cans externally for $0.60 per can.Its unit variable costs and unit fixed costs are $0.24 and $0.08, respectively.The Packaging Division wants to purchase 50,000 cans at $0.32 a can.Selling internally will save $0.02 a can.
-Assuming the Can Division has sufficient capacity, what is the minimum transfer price it should accept?

A) $0.24
B) $0.32
C) $0.22
D) $0.30