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5 Fugazi, Inc. has two divisions. Division A makes and sells student desks. Division B manufacturers and sells reading lamps. Each desk has a reading

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5 Fugazi, Inc. has two divisions. Division A makes and sells student desks. Division B manufacturers and sells reading lamps. Each desk has a reading lamp as one of its components. DivisionA can purchase reading lamps at a cost of $10 from an outside vendor and has a need for 10,000 lamps in 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 externally for $12 per lamp. Variable costs are $7 per lamp and include $1 of variable sales costs that are not incurred if lamps are sold internally to Division A. The total amount of fixed costs for Division B are $80,000. Consider each of the following mdepgndent 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? Justify your

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