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9 1.5 points The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division. This casing is also sold to
9 1.5 points The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division. This casing is also sold to external customers for $28 per unit. Variable costs for the casing are $15 per unit and fixed cost is $3 per unit. Cotwold executives would like for the Molding Division to transfer 11,000 units to the Assembly Division at a price of $22 per unit. Assume that the Molding Division has enough excess capacity to accommodate the request. Required: 1. Should the Molding Division accept the $22 transfer price proposed by management? eBook Hint Yes No Ask 2. Calculate the effect on the Molding Division's net income if it accepts the $22 transfer price. Net Income will increase by Print References
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