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The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division This casing is also sold to external customers for $25

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The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division This casing is also sold to external customers for $25 per unit. Variable costs for the casing are $12 per unit and fixed cost is $3 per unit Cotwold executives would like for the Molding Division to transfer 8,000 units to the Assembly Division at a price of $18 per unit. Assume that the Molding Department has excess capacity, but the Assembly Department requires the casing to be made from a specific blend of plastics. This would raise the variable cost per unit to $20. Required: 1. Should the Molding Division accept the $18 transfer price proposed by management? No O Yes 2. Determine the minimum transfer price that it will accept Minimum Transfer Price S 20 3. Determine the mutually beneficial transfer price so that the two divisions equally split the profits from the transfer. (Round your answer to 2 decimal places.) ually Beneficial Transfer PriceS 000

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