Best Practices, Inc., is a management consulting firm. Its Corporate Division advises private firms on the adoption and use of cost management systems. Government Division consults with state and local governments. Government Division has a client that is interested in implementing an activity-based costing system in its public works department. The division Solution a) Minimum transfer price = $600 per hour 2) Yes b) 1) Since Corporate division is not operating at capacity, minimum transfer price should be equal to its variable cost Minimum transfer price = $200 per hour 2) Yes .