$6$

Division $Y$ has asked Division $x$ of the same company to supply it with $7,200$ units of part $L763$ this year to use in one of its products. Division $Y$ has received a bid from an outside supplier for the parts at a price of $$44$ per unit. Division $x$ has the capacity to produce $28,800$ units of part $L763$ per year. Division $x$ expects to sell $25,920$ units of part $L763$ to outside customers this year at a price of $$47\mathrm{.}20$ per unit. To fill the order from Division $Y,$ Division $x$ would have to cut back its sales to outside customers. Division $x$ produces part $L763$ at a variable cost of $$36$ per unit. The cost of packing and shipping the parts for outside customers is $$2$ per unit. These packing and shipping costs would not have to be incurred on sales of the parts to Division Y$.$

$02$:$15$:$13$

Required:

a$.$ What is the range of transfer prices within which both the Divisions' profits would increase as a result of agreeing to the transfer of $7,200$ parts this year from Division $x$ to Division Y$?($Round your final answers to $2$ decimal places.$)$

Range of transfer prices:

$$ Transfer price $$

b$.$ Is it in the best interests of the overall company for this transfer to take place?

Yes

No