Exercise $22-19($Algo$)$ Determining transfer prices LO C$1$

The Trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The trailers have a market price of $$104$ each. Each trailer incurs $$40$ of variable manufacturing costs. The Trailer division has capacity for $29,000$ trailers per year and has fixed costs of $$500,000$ per year.

Assume the Assembly division of Baxter Bicycles wants to buy $4,400$ trailers per year from the Trailer division. If the Trailer division can sell all of the trailers it manufactures to outside customers $($and has no excess capacity$),$ what price should be used on transfers between divisions?

Assume the Trailer division currently only sells $10,600$ trailers to outside customers and has excess capacity. The Assembly division wants to buy $4,400$ trailers per year from the Trailer division. What is the range of acceptable prices on transfers between divisions?

$\backslash$table$[[1.$ Transfer price per trailer,$],[2.$ Transfer price per trailer will be at least,but not more than$]]$