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Blanco Bikes is a subsidiary of the Zarski Sports Company. Blanco makes high-end mountain bikes that it sells to professional and other serious riders. Blanco

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Blanco Bikes is a subsidiary of the Zarski Sports Company. Blanco makes high-end mountain bikes that it sells to professional and other serious riders. Blanco purchases 50,000 gear shifters for its bikes from DIRT Company at a price of $75 per shifter. Zarski recently purchased the Garrison Gear Company. Garrison is DIRT's chief competitor in the shifter business. Garrison claims its technologically superior shifters permit smoother shifting in muddy riding conditions. Information in Garrison's reports to Zarski headquarters includes the following: Zarski management has asked Blanco's president to consider purchasing the shifters Blanco needs from Garrison. Blanco's president acknowledges that Garrison's shifters are a suitable substitute for the shifters Blanco is currently buying from DIRT. However, she does not believe the hype about a mud shifting advantage. She believes that both companies produce shifters of equal quality and therefore is willing to pay only $75 per shifter (the price she is currently paying for DIRT shifters). In contrast, Garrison's president notes that other independent bike manufacturers recognize the technological superiority of Garrison shifters and are willing to pay a premium for them. He is unwilling to sell to Blanco for less than the current selling prices of $80 per shifter. What is the minimum and maximum transfer price assuming: The seller has excess capacity The seller has not excess capacity The seller has 30,000 units of excess capacity

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