The Trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The trailers have a

market price of $$96$ each. Each trailer incurs $$40$ of variable manufacturing costs. The Trailer division has capacity for $25,000$ trailers

per year and has fixed costs of $$480,000$ per year.

Assume the Assembly division of Baxter Bicycles wants to buy $4,200$ trailers per year from the Trailer division. If the Trailer

division can sell all of the trailers it manufactures to outside customers $($and has no excess capacity$),$ what price should be used

on transfers between divisions?

Assume the Trailer division currently only sells $10,100$ trailers to outside customers and has excess capacity. The Assembly

division wants to buy $4,200$ trailers per year from the Trailer division. What is the range of acceptable prices on transfers

between divisions?