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The Windshield division of Fast Car Co. makes windshields for use in Fast Cars Assembly division. The Windshield division in

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Answer : Transfer price per windshield = $475

Explanation: Since Windshield division already operating at full capacity with no excess capacity . Thus in order to transfer windshields to Assembly division it will have to forgo its outside customers. Therefore Windshield division will be ready to transfer windshields to Assembly division at a transfer price equal to the market price per windshield ie $475

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