After $10$ years in business, Blue's Company was making a significant profit on its Whiz$-$It Blenders. These blenders could whip up a

frosty shake or act as a food processor. One key to this product's success is its stainless$-$steel blade, currently manufactured in$-$house.

The blade division's costs are reported below. It currently only has capacity to supply the internal blender division with these blades.

The company has not seriously considered taking these blades to the outside market yet.

$($a$)$

If the market price of a similar stainless$-$steel blade is $$13$ per unit, will the blade division and the blender division be interested in

setting a transfer price for its blades?

If so$,$ within what range will that transfer price fall?

Minumum transfer price $

Maximum transfer price $

eTextbook and Media

$($b$)$

Suppose a new supplier enters the market, providing stainless$-$steel blades for $$12$ per unit. Will this change the transfer price

range within which the blade division and blender division may agree to transact?

Minumum transfer price $

Maximum transfer price $