Part 10 Big Als Pizza Emporium, a subsidiary of Big Als Pizza, Inc., has decided to sell frozen pizzas in its restaurants. Restaurant customers will take these pizzas home and cook them. The restaurants will sell frozen meat pizzas for $10 and frozen veggie pizzas for $11.50. Although the restaurants would like to purchase the pizzas from Big Als Pizza, Inc., Big Als Pizza Emporium has found an unrelated supplier that will provide the meat pizzas for $4.55 and veggie pizzas for $5.75. Assume that Big Als Pizza, Inc. has excess capacity and can supply the frozen pizzas to Big Als Pizza Emporium without impacting current sales.

Required: A. Using estimated cost data for year 3, given in Part Eight (question A), at what minimum price should Big Als Pizza, Inc. agree to transfer meat and veggie pizzas to Big Als Pizza Emporium? B. What is the maximum price that Big Als Pizza Emporium should pay Big Als Pizza, Inc. for the pizzas? C. If Big Als Pizza Emporium purchases pizzas from Big Als Pizza, Inc., what is the ideal transfer price? Why? D. Should Big Als Pizza Emporium buys pizzas from Big Als Pizza, Inc... What qualitative factors should be considered in making this decision? E. What should the transfer price be if Big Als Pizza, Inc. is at full capacity?