The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division. This cosing is alsa soid to external customers for $36 per unit Variable costs for the casing are $12 per unit, and fixed cost is $5 per unit. Cotwold executives would like for the Molding Division to transfer 19,000 units to the Assembly Division at a price of $30 per unit Assume that the Molding Division has excess capacity. but the Assembly Division requires the casing to be made from a specific blend of plastics. This would raise the vanable cost per unit to $33 Required: 1. Should the Molding Division accept the $30 transfer price proposed by management? 2. Determine the minimum transfer price that it will accept. 3. Determine the mutually beneficial transfer price so that the two divisions equally split the profits from the transfer. Complete this question by entering your answers in the tabs below. Should the Molding Division accept the $30 transfer price proposed by management? Should the Molding Divition accept the $22 transfer price proposed by manogerien? The Molding Division of Cotwoid Company manufactures a plastic casing used by the Assembly Division. This casing is also sold to external customers for $36 per unit. Variable costs for the casing are $12 per unit, and fixed cost is $5 per unit. Colwold executives would like for the Molding Division to transfer 19,000 units to the Assembly Division at a price of $30 per unit. Assume that the Molding Division has excess capacity, but the Assembly Division requires the casing to be made from a specific blend of plastics. This would ralse the variable cost per unit to $33. Required: 1. Should the Molding Division accept the $30 transfer price proposed by management? 2. Determine the minimum transfer price that it will accept. 3. Determine the mutually beneficial transfer price so that the two divisions equally spit the profits from the transfer Complete this question by entering your answers in the tabs below. Determine the minimum transfer price that it will accept. The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division This casing is also sold to external customers for $36 per unit. Variable costs for the casing are $12 per unit, and fixed cost is $5 per unit. Cotwold execulives would like for the Molding Division to transfer 19,000 units to the Assembly Division at a price or $30 per unit. Assume that the Molding Division has excess capacity, but the Assembly Division requires the casing to be made from a specific blend of plastics. This would raise the variable cost per unit to $33. Required: 1. Should the Molding Division accept the $30 transfer price proposed by management? 2. Determine the minimum transfer price that it will accept. 3. Determine the mutually beneficlal transfer price so that the two divisions equaly spit the profits from the transfer Complete this question by entering your answers in the tabs below. Determine the mutually beneficial transfer price so that the two divisions equally split the profits from the transfer. Note: Round your answer to 2 decimal places
