The fastener division of Southern Fasteners manufactures zippers and then sells them to customers for $7.87 per unit. Its variable cost is $3.34 per unit, and its fixed cost per unit is $1.63. Management would like the fastener division to transfer 12,600 of these zippers to another division within the company at a price of $3.34. The fastener division could avoid $0.33 per zipper of variable packaging costs by selling internally. Determine the minimum transfer price.

a) Assuming the fastener division is not operating at full capacity. (Round answer to 2 decimal places, e.g. 10.50.) b) Assuming the fastener division is operating at full capacity.