16. Passico has two divisions, Amber division and Crimson division. Amber division, which has an annual capacity

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16. Passico has two divisions, Amber division and Crimson division. Amber division, which has an annual capacity of 20,000 units, manufactures parts at a variable cost of $35 per unit, which sell on the market for $50 per unit. Market demand is currently 10,000 units per year. Crimson division requires 5,000 units per year from Amber division.

In a negotiation, what range would the transfer price fall in?

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