Disraeli Company has two divisions: Disraeli Bottles and Disraeli Juice. Disraeli Bottles makes glass containers, which it sells to Disraeli Juice and other companies. Disraeli Bottles has a capacity of 10 million bottles a year. Disraeli Juice currently has a capacity of 3 million bottles of juice per year. Disraeli Bottles has a fixed cost of £100,000 per year and a variable cost of £0.01/bottle. Disraeli Bottles can currently sell all of its output at £0.03/bottle.

a. What should Disraeli Bottles charge Disraeli Juice for bottles, in order that both divisions make appropriate decentralized planning decisions?

b. If Disraeli Bottles can only sell 5 million bottles to outside buyers, what should Disraeli Bottles charge Disraeli Juice for bottles in order that both divisions make appropriate decentralized planning decisions?