Refer to the Aulman Inc. company information shown in Exercise 12-27. Also, assume that the company policy is that all transfer prices are negotiated by the divisions involved.

Required:
1. What is the maximum transfer price? Which division sets it?
2. What is the minimum transfer price? Which division sets it?
3. If the transfer takes place, what will be the transfer price? Does it matter whether or not the transfer takes place?