Question
The Windshield division of Fast Car Co. makes windshields for use in Fast Cars Assembly division. The Windshield division incurs variable costs of $220 per
The Windshield division of Fast Car Co. makes windshields for use in Fast Cars Assembly division. The Windshield division incurs variable costs of $220 per windshield and has capacity to make 740,000 windshields per year. The market price is $485 per windshield. The Windshield division incurs total fixed costs of $3,600,000 per year. Assume the Windshield division has excess capacity, what is the range of possible transfer prices that could be used on transfers between the Windshield and Assembly divisions?
Transfer price per windshield will be atleast __________________ but not more then _________
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