Clark Company has a pet division that sells dog leashes to customers for $25.00. The variable cost per unit is $6 and the fixed cost per unit is $4. Management wants the pet division to transfer 6,000 leashes to the veterinarian division at $11 per unit. The company can save $.50 per unit in packaging when transferring units.

a. If Clark is operating with excess capacity, what is the minimum transfer price the pet division would accept?

b. If Clark is operating with no excess capacity, what is the minimum transfer price the pet division would accept?