1.Douglas Company plans to sell 24,000 units of Product A during July and 30,000 units during August. Sales of Product A during June were 25,000 units. Past experience has shown that end-of-month inventory should equal 3,000 units plus 30% of the next month's sales. On June 30 this requirement was met. Based on these data, how many units of Product A must be produced during the month of July?

2.The managers of the Shower Faucet Division and the Flexi Hose Division want to set a transfer price that will divide the resulting profit/savings equally between their divisions.Such transfer price should amount to