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The Windshield division of Jaguar Company makes windshields for use in its Assembly division. The...

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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 $264 per windshield and has capacity to make 630,000 windshields
per year. The market price is $545 per windshield. The Windshield
division incurs total fixed costs of $3,900,000 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?
Answer is complete but not entirely correct.
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