1A)

B)

The Windshield division of Fast Car Co. makes windshields for use in Fast Car's Assembly division. The Windshield division incurs variable costs of $228 per windshield and has capacity to make 500,000 windshields per year. The market price is $460 per windshield. The Windshield division incurs total fixed costs of $3,400,000 per year. Assume the Windshield division has excess capacity, what is the range of possible transfer prices that could be used on transfers between the Windshield and Assembly divisions? Transfer price per windshield will be at least but not more than Use the information in the following table to compute each department's contribution to overhead (both in dollars and as a percent). (Round Contribution percent to 1 decimal place.) Sales Dept. A $ 63,000 39,690 23,310 5,940 Cost of goods sold Gross profit Total direct expenses Contribution to overhead Contribution percent of sales) Dept.B $ 218,000 113,360 104,640 48,400 Dept.C $ 62,000 43,460 38,540 8.486