The Jet Engine Division provides engines for the Jet Plane Division of a company. The standard unit costs for the Jet Engine Division are as follows: 
The engine department has excess capacity. What is the best transfer price to avoid transfer price problems?
Definitions:
DSO
Days Sales Outstanding, a financial metric that calculates the average number of days it takes a company to collect payment after a sale has been made.
Compensating Balances
Minimum cash balances that a borrower agrees to maintain in a demand deposit account as a condition for a loan.
Transactions Balance
The amount of money held to facilitate day-to-day financial transactions, reflecting the liquidity needed for regular expenditures.
Loan Requirement
A set of criteria established by lenders that a borrower must meet to qualify for a loan.
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