The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division. This casing is also sold to external customers for $28 per unit. Variable costs for the casing are $15 per unit, and fixed cost is $3 per unit. Cotwold executives would like for the Molding Division to transfer 11,000 units to the Assembly Division at a price of $22 per unit. Assume that the Molding Division has enough excess capacity to accommodate the request. Required: 1. Should the Molding Division accept the $22 transfer price proposed by management? 2. Calculate the effect on the Molding Division's net income if it accepts the $22 transfer price. Complete this question by entering your answers in the tabs below
Other questions asked by students
Statistics
1.2K views
Psychology
1.2K views
General Management
1.2K views
General Management
1.2K views
Physics
1.2K views
3 2 mg 4 cube will not reach the point 2 A square conducting loop...
Geometry
1.2K views
Find the measure ZBCD in the following parallelogram A B X 2x mZBCD C 0...
Algebra
1.2K views
rite the complete solution as a plus any multiple of s in the nullspace x...
Accounting
1.2K views
Accounting
1.2K views
On July 23 of the current year, Dakota Mining Co. pays $7,445,520 for land estimated...
Accounting
1.2K views
Accounting
1.2K views
Accounting
1.2K views
1. Alison and Chuck Renny began operations of their furniture repair...