Murphy Motors has several regional divisions, which purchase components and parts from one another. Murphy is fully decentralized with each division buying and selling to each other or to outside markets. Each division makes its decision on where to buy and sell and is evaluated as a profit center. Rock division purchases most airbags from an internal Vin division. The manager of the two divisions are currently negotiating a transfer price for the airbags for the upcoming year. Rock division has demand for 1500 finished units. Vin division has capacity for 1000 airbags and has prepared the following information about the airbags: Cost per airbag Direct Materials $40 Direct Labour $60 Variable Manufacturing OH $10 Fixed Manufacturing OH $25 The market price for airbags is $130. Required: 1) If Vin has no external market for airbags, what is their opportunity cost? (1 mark) 2) If Vin has no external market for airbags, what is the range of acceptable transfer prices that both Vin and Rock Divisions will accept? (2 marks)