Refer to Plank Inc. Assume the Following

Essay

Refer to Plank Inc. Assume the following:
∙ Paint Division can make 1,000,000 L per year, and expects to produce 1,000,000 L.
∙ Construction Division currently buys 200,000 L of paint from an outside supplier for $5.20 per litre (the same price that the Paint Division receives).
Required:
A. The maximum transfer price per litre of paint is $__________________.
B. The minimum transfer price per litre of paint is $__________________.
C. Does it matter whether or not the two divisions transfer?