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The Windshield division of Jaguar Company makes windshields for use in its Assembly division. The Windshield division incurs variable costs of $280 per windshield
The Windshield division of Jaguar Company makes windshields for use in its Assembly division. The Windshield division incurs variable costs of $280 per windshield and has capacity to make 580,000 windshields per year. The market price is $595 per windshield. The Windshield division incurs total fixed costs of $3,400,000 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? Transfer price per windshield
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