The peanut butter division of a large conglomerate produces and sells peanut butter to grocery stores for $6/jar. The variable costs are $3/jar. Fixed costs per unit (based on capacity of 50,000 jars) are $1/jar. The division is currently producing and selling 40,000 jars per year.

The same conglomerate has another division that makes frozen peanut butter and jelly sandwiches and currently buys peanut butter from an outside supplier for $5.50/jar. It currently needs 5,000 jars per year. The top managers of the parent company of both divisions are anxious to see the two divisions work together to benefit the entire company.

What is the range of acceptable transfer prices (if any) between the two divisions?