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The Windshield division of Fast Car Co. makes windshields for use in Fast Cars Assembly division. The Windshield division incurs variable costs of $252 per
The Windshield division of Fast Car Co. makes windshields for use in Fast Cars Assembly division. The Windshield division incurs variable costs of $252 per windshield and has capacity to make 590,000 windshields per year. The market price is $485 per windshield. The Windshield division incurs total fixed costs of $3,550,000 per year. If the Windshield division is operating at full capacity, what transfer price should be used on transfers between the Windshield and Assembly divisions?
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