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QS 22-18 (Algo) Determining transfer prices without excess capacity LO C1 The Windshield division of Jaguar Company makes windshields for use in its Assembly division.
QS 22-18 (Algo) Determining transfer prices without excess capacity LO C1 The Windshield division of Jaguar Company makes windshields for use in its Assembly division. The Windshield division incurs variable costs of $276 per windshield and has capacity to make 560,000 windshields per year. The market price is $590 per windshield. The Windshield division incurs total fixed costs of $3,800,000 per year. If the Windshield division is operating at full capacity, what transfer price should be used on transfers between the Windshield and Assembly divisions
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