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The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division. This casing is also sold to external customers for $39 per unit. Variable costs for the casing are $26 per unit, and fixed cost is $6 per unit. Cotwold executives would like for the Molding Division to transfer 22,000 units to the Assembly Division at a price of $33 per unit. Assume the Molding Division is operating at full capacity. Required: 1. Should it accept the transfer price proposed by management? 2. Identify the minimum transfer price that the Molding Division will accept. Complete this question by entering your answers in the tabs below. Identify the minimum transfer price that the Molding Division will accept. The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division. This casing is also sold to external customers for $44 per unit. Variable costs for the casing are $31 per unit, and fixed cost is $6 per unit. Cotwold executives would like for the Molding Division to transfer 27,000 units to the Assembly Division at a price of $38 per unit. Assume that the Molding Division has enough excess capacity to accommodate the request. Required: 1. Should the Molding Division accept the $38 transfer price proposed by management? 2. Calculate the effect on the Molding Division's net income if it accepts the $38 transfer price. Complete this question by entering your answers in the tabs below