Sunland Industries is a decentralized firm. It has two production centres: Vancouver and Kamloops. Each one is evaluated based on its return on investment. Vancouver has the capacity to manufacture 290,000 units of component TR222. Vancouvers variable costs are $150 per unit. Kamloops uses component TR222 in one of its products. Kamloops adds $90 of variable costs to the component and sells the final product for $465. Consider the following independent situations:

Vancouver can sell all 290,000 units of TR222 on the open market at a price of $245 per unit. Kamloops is willing to buy 29,000 of those units. What should the transfer price be?

Of the 290,000 units of component TR222 it can produce, Vancouver can sell 203,000 units on the open market at a price of $245 per unit. Kamloops is willing to buy an additional 29,000 units. What should the minimum transfer price be?

Of the 290,000 units of component TR222 it can produce, Vancouver can sell 232,000 units on the open market at a price of $245 per unit. Kamloops is willing to buy an additional 87,000 units. What should the transfer price be?