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Help! E10-15 (Algo) Determining Transfer Price [LO 10-6] The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division. This casing
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E10-15 (Algo) 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 $41 per unit. Variable costs for the casing are $28 per unit and fixed cost is $6 per unit. Cotwold executives would like for the Molding Division to transfer 24,000 units to the Assembly Division at a price of $35 per unit: Assume the Molding Division is operating at full capacity. Required: 1. Should it accept the transfer price proposed by management? Yes No 2. Identify the minimum transfer price that the Molding Division will accept Step by Step Solution
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