The Appraisal Department of Ayayai Bank performs appraisals of business properties for loans being considered by the bank and appraisals for home buyers that are financing their purchase through some other financial institution. The department charges $128 per home appraisal, and its variable costs are $104 per appraisal. Recently, Ayayai Bank has opened its own Home-Loan Department and wants the Appraisal Department to perform 960 appraisals on all Ayayai Bankfinanced home loans. Bank management feels that the cost of these appraisals to the Home-Loan Department should be $120. The variable cost per appraisal to the Home-Loan Department would be $6 less than those performed for outside customers due to savings in administrative costs. (a) Determine the minimum transfer price, assuming the Appraisal Department has excess capacity.

Minimum transfer price

$enter the minimum transfer price in dollars

(b) Determine the minimum transfer price, assuming the Appraisal Department has no excess capacity.

Minimum transfer price

$enter the minimum transfer price in dollars

(c) Assuming the Appraisal Department has no excess capacity, should management force the department to charge the Home-Loan Department only $120? select an option NoYes