The Appraisal Department of Cullumber Mortgage 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 $$245$ per home appraisal and its variable costs are $$200$ per appraisal.

Recently, Cullumber Mortgage Bank has opened its own Home$-$Loan Department and wants the Appraisal Department to perform

$1,220$ appraisals on all Cullumber Mortgage Bank$-$financed home loans. Bank management feels that the cost of these appraisals to

the Home$-$Loan Department should be $$230.$ The variable cost per appraisal to the Home$-$Loan Department would be $$10$ less than

those performed for outside customers due to savings in administrative costs.

$($a$)$

Your answer is incorrect.

Determine the minimum transfer price assuming that the Appraisal Department has excess capacity.

Minimum transfer price $