Central Coffee Co. recently opened a gourmet coffee caf in downtown Naperville. Central's top management has organized the business into two divisions-the Roasting/Packaging Division and the Caf Division. The Roasting/Packaging Division can sell to outside customers or sell the product to the Caf Division-who will grind, brew, and sell the coffee. Monthly data are as follows: Monthly production capacity Average selling price to outside customers Variable cost per pound 25,000 pounds $10.50 per pound Direct materials (coffee) Direct materials (packaging) Direct labor Variable overhead $ 2.95 $ 0.35 1.00 $ 0.20 $ 3.00 Fixed cost per pound The Caf Division requires 3,000 pounds per month and is currently paying an outside supplier $9.75 per pound. Consider each part below independently Required: a. Determine the Roasting/Packaging Division's normal contribution margin per unit and contribution margin ratio for sales made to outside customers. b. If outside customers demand only 20,000 units per year, what is the range of acceptable transfer prices for the Roasting/Packaging Division selling 3,000 pounds to the Cafe Division? c. If outside customers demand all 25,000 pounds, and if, by selling to the Caf, Roasting/Packaging could avoid $0.30 per unit in variable packaging and direct labor, what is the lowest acceptable transfer price from the viewpoint of the selling division (Roasting/Packaging)? Is it likely that a transfer will occur? d. If outside customers demand 23,000 pounds, and if, by selling to the Caf, Roasting/Packaging could avoid $0.40 per unit in variable packaging and direct labor, what is the lowest acceptable transfer price from the viewpoint of the selling division (Roasting/Packaging)? Is it likely that a transfer of the 3,000 pounds will occur?