Bramble Electronics operates as a decentralized company. Brambles Battery division manufactures batter chargers that are sold both externally to outside customers and internally to the Camera division. Battery divisions annual capacity is 83,700 units. The revenue and costs associated with one battery charger are as follows:

Selling Price to external customers		$21
Variable Cost		13
Fixed Cost (based on capacity)		4

The Camera division would like to purchase 25,110 units of battery chargers; however, Cameron, the manager of the Camera division, is able to purchase the battery charger from an overseas supplier at $19.

Assuming the Battery division operates at 85% capacity, what is the range of the transfer price, if any, for the battery charger? Cameron has learned that the Battery division operates below its capacity. He is willing to pay up to $18.50 for a battery charger. Should the Battery division accept the offer at $18.50?

Minimum

? TP ?

Maximum

The range $_______ ? TP ? $_________

The Battery division _____(should/should not) accept the offer to transfer the battery chargers at $18.50.