The Windshield division of Jaguar Co. makes windshields for use in its Assembly division. The Windshield division

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The Windshield division of Jaguar Co. makes windshields for use in its Assembly division. The Windshield division incurs variable costs of $200 per windshield and has capacity to make 500,000 windshields per year. The market price is $450 per windshield. The Windshield division incurs total fixed costs of $3,000,000 per year. If the Windshield division is operating at full capacity, what transfer price should be used on transfers between the Windshield and Assembly divisions?

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