The fastener division of Southern Fasteners manufactures zippers and then sells them to customers for $7.40 per unit. Its variable cost is $3.24 per unit, and its fixed cost per unit is $1.72. Management would like the fastener division to transfer 12,700 of these zippers to another division within the company at a price of $3.24. The fastener division could avoid $0.15 per zipper of variable packaging costs by selling internally. Determine the minimum transfer price.

Wo firms, a and b, each currently dump 50 tons of chemicals into the local river. the government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution dumped into the river. it costs firm a $100 for each ton of pollution that it eliminates before it reaches the river, and it costs firm b $50 for each ton of pollution that it eliminates before it reaches the river. the government gives each firm 20 pollution permits. government officials are not sure whether to allow the firms to buy or sell the pollution permits to each other. what is the total cost of reducing pollution if firms are not allowed to buy and sell pollution permits from each other? what is the total cost of reducing pollution if the firms are allowed to buy and sell permits from each other? a. $3,000; $1,500 b. $4,500; $3,500 c. $4,500; $4,000 d. $4,500; $2,500