The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division. This casing is also sold to external customers for $$40$ per unit. Variable costs for the casing are $$27$ per unit, and fixed cost is $$6$ per unit. Cotwold executives would like for the Molding Division to transfer $23,000$ units to the Assembly Division at a price of $$34$ per unit.

Assume the Molding Division is operating at full capacity.

Required:

Should it accept the transfer price proposed by management?

Identify the minimum transfer price that the Molding Division will accept.