The Engine division of a company manufactures small engines. Each engine incurs $$100$ of variable manufacturing costs and has a market price of $$140.$ The Engine division can make $34,000$ units per year and has fixed costs of $$540,000$ per year.

Assume the Engine division currently sells $27,200$ engines per year and therefore has excess capacity. The Assembly division wants to buy $3,400$ engines per year. What is the range of acceptable prices on engine transfers from the Engine division to the Assembly division?

Assume the Engine division has no excess capacity and can sell all it manufactures to outside customers. The company's Assembly division wants to buy $3,400$ engines per year from the Engine division. What price should be used on engine transfers from the Engine division to the Assembly division?