Question: QS 2 2 - 1 9 ( Algo ) Determining transfer prices with excess capacity LO C 1 The Windshield division of Jaguar Company makes

QS 22-19(Algo) Determining transfer prices with excess capacity LO C1
The Windshield division of Jaguar Company makes windshields for use in its Assembly division. The Windshield division incurs variable costs of $284 per windshield and has capacity to make 550,000 windshields per year. The market price is $475 per windshield. The Windshield division incurs total fixed costs of $3,750,000 per year.
If the Windshield division has excess capacity, what is the range of possible transfer prices that could be used on transfers between the Windshield and Assembly divisions?

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