Pert Corporation manufactures state-of-the-art DVD players. It is a division of Vany TV, which manufactures televisions. Pert sells the DVD players to Vany, as well as to retail stores. The following information is available for Pert's DVD player: variable cost per unit $60; fixed costs per unit $45; and a selling price of $150 to outside customers. Vany currently purchases DVD players from an outside supplier for $140 each. Top management of Vany would like Pert to provide 50,000 DVD players per year at a transfer price of $60 each.

Compute the minimum transfer price that Pert should accept assumping Pert is operating at full capacity.

Minimum transfer price

$

Compute the minimum transfer price that Pert should accept assumping Pert has sufficient excess capacity to provide the 50,000 players to Vany.

Minimum transfer price

$