Question $/$ Sonico Electronics operates as a decentralized company. Sonico's Battery division manufactures batter chargers that are sold both externally to outside customers and internally to the Camera division. Battery division's annual capacity is $90,000$ units. The revenue and costs associated with one battery charger are as follows:

Selling Price to external customers $$20$

Variable Cost $12$

Fixed cost $($based on capacity$)4$

The Camera division would like to purchase $27,000$ units of battery chargers; however, Cameron, the manager of the Camera division, is able to purchase the battery charger from an overseas supplier at $$18.$

Required:

A$.$ Assuming the Battery division operates at $60\%$ capacity, what is the range of the transfer price, if any, for the battery charger? Cameron has learned that the Battery division operates below its capacity. He is willing to pay up to $$17\mathrm{.}50$ for a battery charger. Should the Battery division accept the offer at $$17\mathrm{.}50?$

B$.$ Assuming the Battery division operates at $85\%$ capacity, what is the range of the transfer price, if any, for the battery charger? Cameron has learned that the Battery division operates below its capacity. He is willing to pay up to $$17\mathrm{.}50$ for a battery charger. Should the Battery division accept the offer at $$17\mathrm{.}50?$

C$.$ Assuming the Battery division operates at $100\%$ capacity, what is the range of the transfer price, if any, for the battery charger? Cameron has learned that the Battery division operates at its capacity and understands that Sonico encourages internal transfer of products and services. He is willing to pay up to $$18$ for a battery charger. Should the Battery division accept the offer at $$18?$