(Appendix 12A) The Red River Division of Alto Company produces and sells bags of pottery clay which can either be sold to outside customers or transferred to the White Mountain Division of Alto Company.The following data are available for the last year: 
By selling to the White Mountain Division, the Red River Division will avoid $3 per bag in selling costs. What is the maximum transfer price the White Mountain Division should be willing to pay?
Definitions:
Piaget's Theory
A theory of cognitive development that describes how children develop logical thinking from infancy through adolescence through a series of stages.
Culture
The shared beliefs, practices, norms, and values of a group of people that are passed down from generation to generation.
Egocentric Thought
A way of thinking in which an individual perceives the world solely from their own perspective, often seen in young children.
Sensorimotor
The first stage of Jean Piaget's theory of cognitive development, where infants explore the world and learn about it through their senses and motor activities.
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