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The Plastics Division of Weston Company manufactures plastic molds and then sells them for $70 per unit .Its variable cost is $30 per unit, and
The Plastics Division of Weston Company manufactures plastic molds and then sells them for $70 per unit.Its variable cost is $30 per unit, and its fixed cost per unit is $10.Management would like the Plastics Division to transfer 10,000 of these molds to another division within the company (internal) at a price of $40. The Plastics Division is operating at full capacity.What is the minimum transfer price that the Plastics Division should accept?
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