The Pro Company is? decentralized, and divisions are considered investment centers. Watkins specializes in sports? equipment, and one division manufactures netting that is used for basketball? hoops, soccer? goals, and other sports equipment. The Netting Division reports the following information for a? heavy-duty basketball hoop? net:

The Basketball Equipment Division can purchase a similar? heavy-duty net from an outside vendor for? $15

Sales Price per Unit	$18
Variable Cost per Unit	6
Contribution Margin per Unit	$12

Requirements

1.	Determine the negotiable range for the transfer price.
2.	What is the minimum transfer price the Netting Division should consider if operating at? capacity? Below? capacity?
3.	What is the maximum transfer price the Basketball Equipment Division should? consider?