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	Case
	1	2	3	4
Division A:
Capacity in units	50,000	285,000	105,000	205,000
Number of units now being sold to outside customers	50,000	285,000	79,000	205,000
Selling price per unit to outside customers	$97	$42	$64	$46
Variable costs per unit	$59	$19	$39	$32
Fixed costs per unit (based on capacity)	$20	$12	$21	$7
Division B:
Number of units needed annually	10,300	71,000	22,000	64,000
Purchase price now being paid to an outside supplier*	$87	$40	$64

* Before any purchase discount.

Required:
1.	Refer to case 1. A study has indicated that Division A can avoid $6 per unit in variable costs on any sales to Division B.

a.	What is the minimum transfer price for Division A? (Omit the "$" sign in your response.)

Minimum transfer price

$

b.	What is the maximum transfer price for Division B? (Omit the "$" sign in your response.)

Maximum transfer price

$

Refer to case 2. Assume that Division A can avoid $5 per unit in variable costs on any sales to Division B.

c.	What is the minimum transfer price for Division A? (Omit the "$" sign in your response.)

Minimum transfer price

$

d.	What is the maximum transfer price for Division B? (Omit the "$" sign in your response.)

Maximum transfer price

$

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