Gallos winery, manufactures bottles and fine wine Merlot. The company consists of two divisions; the bottle and winery divisions. Currently, the bottle division is operating at full capacity and selling all the bottles they can produce to outside wineries at a price of $2.00 per case. The bottle divisions variable cost is $1.60 per case. The winery division is currently buying bottles from an outside supplier at $2.10 per case and has asked corporate management to require the bottle division to sell the 100,000 cases of bottles needed by the winery division internally at $1.90 per case. Summary financial information related to both divisions with bottles sold externally is as follows:

Bottle Division Winery Division

Sales $800,000 $3,000,000

Variable cost $640,000 $1,500,000

Fixed cost $ 75,000 $1,000,000

Income $ 85,000 $ 500,000

What is the minimum transfer price per case?

What is the maximum transfer price per case?

What is the impact on company profitability if the bottle division is required to sell the bottles internally?