I have this Home work assignment I don't understand. I keep getting the wrong answer. could you walk me through each step so I understand where I went wrong?

Branson co. has a number of divisions that produce various paints that use the glass containers. Branson co. has a glassware division that manufactures a variety of containers that can be sold internally to their paint-posh division or externally to other manufacturers. Sales and cost data for the three ounce container are as follows:

Unit selling price $2.95

Unit variable cost $1.25

Unit product fixed cost $0.70

($350,000/500,000 units at practical capacity)

During the coming year, the glassware division expects to sell 390,000 cases of this glass container. The paint-posh division currently plans to buy 100,000 cases on the outside market for $2.95 each. Stanly, manager of the glassware division, approached Danny, manager of the paint-posh division, and offered to sell the 100,000 cases for $2.89 each. Stanly explained to Danny that he can avid selling costs of $0.12 per case by selling internally and that he would split the savings by offering a $0.06 discount on the usual price.

Required:

1. What is the minimum transfer price that the glassware division would be willing to accept? What is the maximum transfer price that the paint-posh division would be willing to pay? Should an internal transfer take place?

2. Suppose Danny knows that the glassware division has idle capacity. Do you think that he would agree to the transfer price of $2.89? Suppose he counters with an offer to pay $2.40. If you were Stanly, would you be interested in this price? Explain with supporting computations.

3. Suppose that paint-posh division policy is that all internal transfers take place at the full manufacturing cost. What would the transfer price be? Would the transfer take place?