1. The Slate Company manufactures and sells television sets. Its assembly division (AD) buys television screens from the screen division (SD) and assembles the TV sets. The SD, which is operating at capacity, incurs an incremental manufacturing cost of $65 per screen. The SD can sell all its output to the outside market at a price of $92 per screen. If the AD purchases screens from outside suppliers at a price of $100 per screen, it will incur a variable purchasing cost of $7 per screen. Slates division managers can act autonomously to maximize their own divisions operating income.
   1. What is the minimum transfer price at which the SD manager would be willing to sell screens to the AD? Show your calculations for both variables in the equation.
   2. What is the maximum transfer price at which the AD manager would be willing to purchase screens from SD?