Kirkland Metal Corporation has two divisions. The fabrication division transfers partially completed components to the assembly division

Question:

Kirkland Metal has two divisions. The fabrication division transfers partially completed components to the assembly division at a predetermined transfer price. The fabrication division's standard variable production cost per unit is $300. The division has no excess capacity, and it could sell all of its components to outside buyers at $380 per unit.
Instructions
(a) Determine an appropriate transfer price for the fabrication division.
(b) How would the transfer price change if the fabrication division had excess capacity?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...