The Windshield division of Jaguar Company makes windshields for use

in its Assembly division. The Windshield division incurs variable costs

of $$264$ per windshield and has capacity to make $630,000$ windshields

per year. The market price is $$545$ per windshield. The Windshield

division incurs total fixed costs of $$3,900,000$ 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?

Answer is complete but not entirely correct.