The Axle Division of Becker Company produces axles for off-road
sport vehicles. One-third of Axle's 45,300 unit output is sold to
an internal division of Becker; the remainder is sold to outside
customers. Axles' estimated operating profit for the year is:
The internal division has an opportunity to purchase 15,100
axles of the same quality from an outside supplier on a continuing
basis. The purchase price would be $18.50. If the Axle Division is
now operating at full capacity and can sell all its units to
outside customers at the present selling price, what is the minimum
selling price that Axle should accept from the internal
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