8. The Windshield division of Jaguar Company makes windshields for use in its Assembly division....
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Accounting
The Windshield division of Jaguar Company makes windshields for use in its Assembly division. The Windshield division incurs variable costs of $ per windshield and has capacity to make windshields per year. The market price is $ per windshield. The Windshield division incurs total fixed costs of $ 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?
Transfer price per windshield will be at least
but not more than
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