Required:

a$.$ Suppose Manufacturing would have excess capacity even with the demand from Distribution. Ignoring tax implications, what

transfer price would you recommend Cascade Containers adopt?

b$.$ What would be the total taxes Cascade Containers paid under the policy you recommend in requirement $($a$)?$

c$.$ Suppose Manufacturing has no excess capacity. Ignoring tax implications, what transfer price would you recommend Cascade

Containers adopt?

d$.$ What would be the total taxes Cascade Containers paid under the policy you recommend in requirement $($c$)?$