bottles that can be sold externally $($to soft$-$drink and juice bottlers$)$ or internally to Asgard Farm's Jams Division. Sales and cost data on a case of $24$ basic $12$ ounce bottles are as follows:

Unit selling price $,$$$3\mathrm{.}25$

Unit variable cost $$1\mathrm{.}15$

Unit product fixed cost$*$ $$0\mathrm{.}60$

Practical capacity in cases $550,000$

$**$$$330,\frac{000}{550},000$

During the coming year, the Glassware Division expects to sell $420,000$ cases of this bottle. The Jams and Jellies Division currently plans to buy $113,140$ cases on the outside market for $$3\mathrm{.}25$ each. Bella Howard, manager of the Glassware Division, approached Paul Vining, manager of the Jams and Jellies Division, and offered to sell the $113,140$ cases for $$3\mathrm{.}20$ each. Bella explained to Paul that she can avoid selling costs of $$0\mathrm{.}14$ per case by selling internally and that she would split the savings by offering a $$0\mathrm{.}05$ discount on the usual price.

Required:

What is the minimum transfer price that the Glassware Division would be willing to accept? Round to the nearest cent.

$ per unit

What is the maximum transfer price that the Jams and Jellies Division would be willing to pay? Round to the nearest cent.

$ per unit

Should an internal transfer take place?

What would be the benefit $($or loss$)$ to the firm as a whole if the internal transfer takes place? When required, round your answer to the nearest dollar. $

$2.$ Suppose Paul knows that the Glassware Division has idle capacity. Do you think that he would agree to the transfer price of $$3\mathrm{.}20?$

Suppose he counters with an offer to pay $$2\mathrm{.}74.$ If you were Bella, would you be interested in this price?

$3.$ Suppose that Asqard Farm's policy is that all internal transfers take place at full manufacturing cost. What would the transfer price be$?$ Round to the