Question: can someone please help me solve this two part solution? Dr. Lipe's duck farm produces up to 1,000 eggs per month at variable costs of

can someone please help me solve this two part solution?

can someone please help me solve this two partcan someone please help me solve this two part
Dr. Lipe's duck farm produces up to 1,000 eggs per month at variable costs of $0.50 per egg. He can sell up to 500 eggs per month to his neighbors at $1.50 per egg. Assume that he runs a breakfast restaurant as a side gig because he is a man of many talents. For his duck omelete, he needs M duck eggs. The omelete is priced at $6.50 on the menu. Other variable costs (material and labor) to produce one omelete are $2.00. Duck eggs trade at $1.50 each on the market (either for selling his own eggs to neighbors or for buying eggs for his restaurant from the duck egg wholesale). There is a monthly demand of 400 eggs from his restaurant (for 200 omeletes). With his "managerial accounting hat" on, would Dr. Lipe like to see his farm and restaurant businesses trade internally? Show two numbers (as whole numbers without decimals, for example 1,000): No transfer: Total monthly contribution margin if 500 eggs are sold directly and the restaurant uses wholesale eggs to make omelets: Transfer: Total monthly contribution margin if 500 eggs are sold directly and 400 eggs are transferred to the restaurant and made into omeletes: Dr. Lipe's duck farm and restaurant businesses operate autonomously and nobody can force them to trade or not to trade with each other. Which of the following answers shows a transfer price that achieves the result recommended in the previous problem (transfer or no transfer). If you did not come up with an answer to the previous problem or distrust your solution, assume that Dr. Lipe wants the 400 eggs to be transferred to the restaurant and therefore does not want the restaurant to buy the wholesale eggs. Note: There is a range of feasible transfer prices that stimulate internal transfers. But only one of the answers falls inside this range. O A- $0.40 (7 B- $2.00 '73 C- $1.00 A 0- $3.00

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