Quail Company produces outdoor gear. Salter is a division of Quail that manufactures unbreakable zippers used in Quail's gear and

sold to other manufacturers. Cost information per zipper follows:

In addition, Salter's capacity data follow:

Capacity per year

Current production level

$2,000,000$ zippers

$1,500,000$ zippers

Required:

Assuming Quail produces $300,000$ sleeping bags per year, what is the overall benefit of using zippers from Salter instead of

purchasing them externally?

Determine the maximum price the sleeping bag production facility would be willing to pay to purchase the zippers from Salter.

Determine the minimum price Salter will accept as a transfer price.

Note: Round your answer to $1$ decimal place.

Determine the mutually beneficial transfer price for the zippers.

Note: Round your answer to $1$ decimal place.

If Salter were operating at capacity, what is the minimum price it would accept?

Answer is not complete.