Transfer Pricing, Idle Capacity Asgard Farms, Inc., has a number of divisions that produce jams and jellies, condiments, and glassware. The Glassware Division manufactures a variety of bottles that can be sold i externally (to soft-drink and juice bottlers) or internally to Asgard farms's Jams Division. Sales and cost data on a case of 24 basic 12-ounce bottles are as follows: Unit selling price Unit variable cost Unit product foxed cost Practical capacity in cases $350,000/500,000 $2.30 $0.90 $0.70 500,000 During the coming year, the Glassware Division expects to sell 390,000 cases of this bottle. The Jams and Jellies Division currently plans to buy 100,000 cases on the outside market for $2.30 each. Bella Howard, mariager of the Glassware Division, approached Paul Vining, manager of the Jams and Jellies Division, and offered to sell the 100,000 cases for $2.24 each. Bella explained to Paul that she can avoid selling costs of $0.12 per case by selling internally and that she would split the savings by offering a $0.06 discount on the usual price. Required: 1. What is the minimum transfer price that the Glassware Division would be willing to accept? Round to the nearest cent. $ per unit What is the maximum transfer price that the Jams and Jellies Division would be willing to pay? Round to the nearest cent. per unit Should an internal transfer take place?