E17.8 (LO 4), AP MiLemon Company started as a small business, selling ice cold lemonade at area festivals. As the company grew, it became more decentralized. The lemon-press division went gangbusters, not only pro- viding its lemon concentrate to the lemonade division of the company but also selling its concentrate externally to a variety of businesses. The variable cost to make one gallon of lemon concentrate from the pressing process is $3. If all production costs are considered, the cost is $4 per gallon. The current market price for a gallon of this concentrate is $6. Required a. Assuming the lemon-press division has enough capacity to meet both internal and external demand for its concentrate, what transfer price range would be likely? b. If all of the lemon-press division's capacity is currently being used to supply the lemonade division with lemon concentrate, the lemon-press division would be missing out on sales to external parties. What trans- fer price range would be likely for the lemon-press division in this scenario? c. Does the existence of available capacity affect the transfer price between two internal parties? Explain why or why not.