Transfer Pricing, Idle Capacity Mouton & Perrier, Inc., has a number of divisions that produce liquors, bottled water, and glassware. The Glassware Division manufactures a variety of bottles that can be sold externally (to soft drink and juice bottlers) or internally to Mouton & Perrier's Bottled Water Division Sales and cost data on a case of 24 basic 12-ounce bottles are as follows: Unit selling price $2.80 Unit variable cost $1.35 Unit product fixed cost" $0.60 Practical capacity in cases 570,000 *$342,000/570,000