4. Crede Inc. has two divisions. Division A manufactures and sells student desks. Division B manufactures and sells reading lamps. Each desk has a reading lamp as one of its components. Division A carn purchase reading lamps at a cost of $10 from an outside vendor. Division A needs 10,000 lamps for the coming year Division B has the capacity to manufacture 50,000 lamps annually. Sales to outside customers are estimated at 40,000 lamps for the next year. Reading lamps are sold at $12 each. Variable costs total $7 per lamp which includes $1 of variable selling costs that are not incurred if lamps are sold internally to Division A. The total amount of fixed costs for Division B is $80,000. Instructions Consider the following independent situations. (a) What should be the minimum transfer price accepted by Division B for the 10,000 lamps and the maximum transfer price paid by Division A? Explain. (b) Suppose Division B could use the excess capacity to produce and sell externally 15,000 units of a NEW product at a price of $7 per unit. The variable costs for this new product total to $5 per unit. What should be the minimum transfer price accepted by Division B for the 10,000 lamps and the maximum transfer price paid by Division A? Explain. (c) If Division A needs 15,000 lamps instead of 10,000 during the next year, what should be the minimum transfer price accepted by Division B and the maximum transfer price paid by Division A? Explain. (d) Assume instead that Division B's capacity is only 40,000 lamps annually and sales to outside customers are estimated at 40,000 lamps for the next year What should be the minimum transfer price accepted by Division B for the 10,000 lamps and the maximum transfer price paid by Division A? Explain