The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division. This casing is also sold to external customers for $$32$ per unit. Variable costs for the casing are $$19$ per unit, and fixed cost is $$4$ per unit. Cotwold executives would like for the Molding Division to transfer $15,000$ units to the Assembly Division at a price of $$24$ per unit. Assume that the Molding Division has enough excess capacity to accommodate the request.

Required:

Should the Molding Division accept the $$24$ transfer price proposed by management?

Calculate the effect on the Molding Division's net income if it accepts the $$24$ transfer price.

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Should the Molding Division accept the $$24$ transfer price proposed by management?

Should the Molding Division accept the $$24$ transfer price proposed by management?