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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 $37
The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division. This casing is also sold to external customers for $37 per unit. Variable costs for the casing are $ 24 per unit and fixed cost is $5 per unit. Cotwold executives would like for the Molding Division to transfer 20,000 units to the Assembly Division at a price of $31 per unit. Assume that the Molding Division is operating at full capacity. Required: 1. Should it accept the transfer price proposed by management? OYes O No 2. Identify the minimum transfer price that the Molding Division will accept Minimum Price
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