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Business, 05.04.2020 20:13 sky81428

The Windshield division of Fast Car Co. makes windshields for use in Fast Car’s Assembly division. The Windshield division incurs variable costs of $220 per windshield and has capacity to make 740,000 windshields per year. The market price is $515 per windshield. The Windshield division incurs total fixed costs of $3,950,000 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?

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