The USA Company's Box Division produces cardboard boxes used for packaging microwavable fast foods. The Consumer Products Division produces a variety of fast-food entrees that are packaged in boxes. In the past the Consumer Products Division has purchased its boxes from the Box Division for \(\$ 0.15\) each. The Box Division currently is producing at capacity and sells \(6,000,000\) of these boxes each year at a price of \(\$ 0.15\). The Consumer Products Division has offered to buy 500,000 boxes per year from the Box Division at an internal transfer price of \(\$ 0.13\) per box. The Box Division's cost to produce each box consists of \(\$ 0.09\) of variable costs and \(\$ 0.04\) of fixed costs.

\section*{Required}

A. What is the minimum transfer price that would be acceptable to the Box Division?

B. Assume that by selling the boxes internally, the Box Division would avoid \(\$ 0.03\) of variable costs. Should the internal transfer be accepted at \(\$ 0.13\) per box? Explain.