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BUS 208 Chapter 10 Homework 2 Saved 3.75 points eBook The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly

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BUS 208 Chapter 10 Homework 2 Saved 3.75 points eBook The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division. This casing is also sold to external customers for $25 per unit. Variable costs for the casing are $12 per unit and fixed cost is $3 per unit. Cotwold executives would like for the Molding Division to transfer 8,000 units to the Assembly Division at a price of $18 per unit. Assume the Molding Division is operating at full capacity. Required: 1. Should it accept the transfer price proposed by management? Yes No Hint References 2. Identify the minimum transfer price that the Molding Division will accept. Minimum Transfer Price

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