The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division. This casing is also sold external customers for $31 per unit. Variable costs for the casing are $18 per unit, and fixed cost is $4 per unit. Cotwold executive- would like for the Molding Division to transfer 14,000 units to the Assembly Division at a price of $21 per unit. Assume the Molding Division is operating at full capacity. Required: 1. Should it accept the transfer price proposed by management? 2. Identify the minimum transfer price that the Molding Division will accept. Complete this question by entering your answers in the low

The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division. This casing is also sold external customers for $31 per unit. Variable costs for the casing are $18 per unit, and fixed cost is $4 per unit. Cotwold executive- would like for the Molding Division to transfer 14,000 units to the Assembly Division at a price of $21 per unit. Assume the Molding Division is operating at full capacity. Required: 1. Should it accept the transfer price proposed by management? 2. Identify the minimum transfer price that the Molding Division will accept. Complete this question by entering your answers in the low

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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