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QS $22-18($Algo$)$ Determining transfer prices without excess capacity LO C$1$

The Windshield division of Jaguar Company makes windshields for use in its Assembly division. The Windshield division incurs variable costs of $$216$ per windshield and has capacity to make $620,000$ windshields per year. The market price is $$475$ per windshield. The Windshield division incurs total fixed costs of $$3,100,000$ 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