engert Products, Inc., has a Motor Division that manufactures and sells a number of products, including a

standard motor. Data concerning that motor appear below:

Capacity

in

units

$20,000$

Current

sales

of

motors

$17,000$

Selling price to outside customers $ $38$

Variable

cost

per

unit

$

$21$

Fixed cost per unit $($based on capacity$)$ $ $7$

The Automotive Division ofWengert Products, Inc needs $4,000$ standard motors per year. The Automotive Division is

currently purchasing a similar motor from an outside supplier for $$37.$ The Motor Division's variable cost to

manufacture and ship this special motor would be $$2$ less than regular variable cost.

a$.$ What is the minimum acceptable transfer price per unit that the Motor Division would demand?

$2$ decimal places

b$.$ What is the maximum acceptable transfer price per unit that the Automotive Division would be

willing to pay?