TP question

[Question] Cherry Co has two divisions A and B. Division A produces product X and sold exclusively to the external market. Division B produces product Y and it required units of product X to produce Y. Divisons_____________A___________B Selling Price---------------$37-------------$150 Variable cost---------------$30--------------$65 Cost of X purchased- from outside supplier-----------------------$35 Contribution margin-------$7--------------$50 Requirement: 1) What would be the minimum transfer price if division A sold 12,000 units of product X where there is no spare capacity? 2) What would be the maximum transfer price? [Answer 1] Minimum TP = Variable cost + Opportunity cost Minimum TP =--------$30------+---------$7 Minimum TP = -------$37 Opportunity cost is the lost contribution that we would have earned by selling the goods to division B and earned $7 contribution but instead we decide to sell it to external market so we compensate lost contribution from the external market by charging them higher. [Answer 2] Maximum TP = Lower of: i) Net Marginal Revenue ii) External Buy Maximum TP = Lower of: i) $85 = (150 - 65) ii) $35 Maximum TP = $35 Is this correct sir?