$8.(\backslash (\backslash )$ LO$8\mathrm{.}6)$ Heartwood Cabinets is setting its transfer price for cut walnut boards used in some of its most popular cabinet styles. Heartwood's external supplier of walnut boards, Appleton Sawmill, charges between $\backslash (\backslash$$ $250\backslash )$ and $\backslash (\backslash$$ $290\backslash )$ per thousand feet for walnut. Heartwood's sawmill can produce the cut walnut for $\backslash (\backslash$$ $235\backslash )$ per thousand board feet. Its senior management negotiated a $($potential$)$ hybrid price of $\backslash (\backslash$$ $265\backslash )$ per thousand board feet. Assume that Heartwood needs $125,000$ board feet to produce enough walnut cabinets to meet anticipated demand. Marketing estimates that Heartwood will sell $5,500$ cabinet units at $\backslash (\backslash$$ $325\backslash )$ per unit. Assume the manufacturing division has fixed costs of $\backslash (\backslash$$ $7,250\backslash )$ and variable costs of $\backslash (\backslash$$ $6\mathrm{.}50\backslash )$ per cabinet. Also assume the sawmill has purchase costs of $\backslash (\backslash$$ $90\backslash )$ per $1,000$ board feet and variable costs of $\backslash (\backslash$$ $1\mathrm{.}25\backslash )$ per $1,000$ board feet. Determine whether a transfer price based on the market price, cost of manufacturing, or a hybrid yields the best outcome for Heartwood overall, the sawmill division, and the manufacturing division.