The Book Division of Tandem books manufactures and sells paper back books for $9.60 per book. Its unit variable costs and unit fixed costs are $0.24 and $0.09, respectively. The Sunset Division wants to purchase 50,000 special edition hardback books. The variable cost will be $1.90 per book. Assuming the Tandem Division is already operating at full capacity, what is the minimum transfer price it should accept?
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