What is the minimum price claremont would accept


Claremont Division has the capacity to make 3,000 units of an intermediate good that is sold both internally and on the open market for a price of $28 each. To make the product, Claremont incurs $5 of variable cost per unit and $12 of fixed costs per unit. What is the minimum price Claremont would accept for an internal transfer of the 1,000 units of the product if the division is operating at 50% capacity?

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