Ayayai Inc. has two divisions. Division A makes and sells student desks. Division B manufactures and sells reading lamips.

Each desk has a reading lamp as one of its components. Division A can purchase reading lamps at a cost of $$10$ from an outside vendor. Division A needs $12,400$ lamps for the coming year,

Division B has the capacity to manufacture $62,000$ lamps annually. Sales to outside customers are estimated at $49,600$ lamps for the next year. Reading lamps are sold at $$12$ each. Variable costs are $$7$ per lamp and include $$3$ of variable sales costs that are not incurred if lamps are sold internally to Division A$.$ The total amount of fixed costs for Division B is $$99,200.$

Consider the following independent situations.

Your answer is partially correct.

What should be the minimum transfer price accepted by Division B for the $12,400$ lamps and the maximum transfer price paid by Division A$?$ :

Minimum transfer price accepted by Division B

$ $$ per unit

Maximum transfer price paid by Division $A$

$ $$ per unit

eTextbook and Media

Your answer is incorrect.

Suppose Division B could use the excess capacity to produce and sell externally $18,600$ units of a new product at a unit selling price of $$7.$ The unit variable cost for this new product is $$5.$ What should be the minimum transfer price accepted by Division B for the $12,400$ lamps and the maximum transfer price paid by Division A$?$

Minimum transfer price accepted by Division B

$ $$ per unit

Maximum transfer price paid by Division A

$ $$ per unit

eTextbook and Media

Your answer is incorrect.

If Division A needs $15,500$ lamps instead of $12,400$ during the next year, what should be the minimum transfer price accepted by Division B and the maximum transfer price paid by Division A$?($Round answers to $2$ decimal places, e$\mathrm{.}8.10\mathrm{.}50.)$

Minimum transfer price accepted by Division B

$ $$ per unit Maximum transfer price paid by Division A

$ $$ per unit