Jefferson Company has two divisions: Jefferson Bottles and Jefferson Juice. Je

Jefferson Company has two divisions: Jefferson Bottles and Jefferson Juice. Jefferson Bottles makes glass containers which it sells to Jefferson Juice and
other companies. Jefferson Bottles has a capacity of 10 million bottles a year. Jefferson Juice currently has a capacity of 3 million bottles of juice per
year. Jefferson Bottles has a fixed cost of $100000 per year and a variable cost of $0.01/bottle. Jefferson Bottles can currently sell all of its output at
$0.03/bottle.
Required:

a. What should Jefferson Bottles charge Jefferson Juice for bottles so that both divisions will make appropriate decentralized planning decisions?

b. If Jefferson Bottles can only sell 5 million bottles to outside buyers what should Jefferson Bottles charge Jefferson Juice for bottles so that both
divisions will make appropriate decentralized planning decisions?