Question: Sed 2 E10-15 (Algo) Determining Transfer Price [LO 10-6) 5 points Swipped The Molding Division of Cotwold Company manufactures a plastic casing used by the
Sed 2 E10-15 (Algo) Determining Transfer Price [LO 10-6) 5 points Swipped The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division. This casing is also sold to external customers for $38 per unit . Variable costs for the casing are $25 per unit and fixed cost is $5 per unit Cotwold executives would like for the Molding Division to transfer 21000 units to the Assembly Division at a price of $32 per unit) Assume the Molding Division is operating at full capacity Required: 1. Should it accept the transfer price proposed by management? etool Yes No Di 2. Identify the minimum transfer price that the Molding Division will accept References Minum Transfer Price
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