Rubec Products, Inc., operates a Pulp Division that manufactures wood pulp for use in the production of various paper goods. Revenue and costs associated with a ton of pulp follow:

Selling price					$	22
Expenses:
Variable	$	12
Fixed (based on a capacity of 105,000 tons per year)		6				18
Net operating income					$	4

The newly formed Carton Division is currently purchasing 29,000 tons of pulp per year from a supplier at a cost of $22 per ton, less a 10% purchase discount.

Required:

For (1) and (2) below, assume that the Pulp Division can sell all of its pulp to outside customers for $22 per ton.

1-a. What is the minimum Transfer Price at which Pulp is willing to sell within the firm?