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What transfer price should be used on transfers

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Reference no: EM132841771

Question - The Windshield division of Fast Car Co. makes windshields for use in Fast Car's Assembly division. The Windshield division incurs variable costs of $284 per windshield and has capacity to make 670,000 windshields per year. The market price is $460 per windshield. The Windshield division incurs total fixed costs of $3,400,000 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?

Reference no: EM132841771

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