Refer to Problem 15-37. Suppose Health Services could sell time on the machine to other companies in the area on a per-hour basis. Further, it can sell all the time available for $30 per hour.

Required

a. What is the optimal transfer price rule Health Services should use to charge Optics?

b. Suppose Optics uses 1,000 hours on the new machine. What is the average cost per hour Optics would pay using the rule you developed in part (a)?

c. Suppose Optics uses 100 hours on the new machine. What is the average cost per hour Optics would pay using the rule you developed in part (a)?