The Appraisal Department of Sunland Mortgage Bank performs appraisals of business properties for loans being considered by the bank and appraisals for home buyers that are nancing their purchase through some other nancial institution. The department charges $405 per home appraisal and its variable costs are $360 per appraisal. Recently, Sunland Mortgage Bank has opened its own Home-Loan Department and wants the Appraisal Department to perform 1,380 appraisals on all Sunland Mortgage Bank-nanced home loans. Bank management feels that the cost of these appraisals to the Home-Loan Department should be $390. 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) Determine the minimum transfer price assuming that the Appraisal Department has excess capacity. Minimum transfer price $