Business, 07.06.2021 16:30 potatonene
The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division. This casing is also sold to external customers for $25 per unit. Variable costs for the casing are $12 per unit and fixed cost is $3 per unit. Cotwold executives would like for the Molding Division to transfer 8,000 units to the Assembly Division at a price of $18 per unit. Assume that the Molding Division has enough excess capacity to accommodate the request. Calculate the effect on Molding Division’s net income if it accepts the $18 transfer price.
Answers: 2
Business, 22.06.2019 17:40
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The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division....
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