Use the following information for the next 2 questions.
The Kelso Division produces and sells a product to external and internal customers. Per-unit information about its operations include: 
-If Kelso has sufficient excess capacity to meet internal demand, what should be the transfer price for Kelso's product?
Definitions:
Unused Capacity
The available production or service capability that is not being utilized by a business.
Predetermined Overhead Rate
A rate calculated before the accounting period begins, used to allocate manufacturing overhead costs to individual jobs or products based on a certain activity base, such as machine hours or labor hours.
Automated Lathe
A machine used in the manufacturing process that is controlled by a computer, improving precision and efficiency in producing parts.
Capacity
The highest amount of production a company can maintain during a specific time frame under standard conditions.
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