Use the information for Home Office above with the following 2 changes: 1. The Computer Desk Division is able to sell at full capacity (15,000 units) for $400 per desk. 2. If there is a transfer between division, the Computer Desk division will save $50 per unit in Variable Marketing and Shipping costs.

Answer the following questions. Show your work and clearly label your answers.

a. What is the appropriate Transfer Price range? b. If a transfer is made for $360 per desk, how much better or worse off is the firm?