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2. .50 E10-15 Determining Transfer Price [LO 10-6] The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division. This casing
2. .50 E10-15 Determining Transfer Price [LO 10-6] 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 S6 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 that the Molding Division has enough excess capacity to accommodate the request. Required 1. Should the Molding Division accept the $33 transfer price proposed by management? O Yes O No 2. Calculate the effect on Molding Division's net income if it accepts the $33 transfer price. Net Income will increase by
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