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B) Suppose Division B could use the excess capacity to produce and sell externally 17,400 units of a new product at a unit selling price

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedB) Suppose Division B could use the excess capacity to produce and sell externally 17,400 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 11,600 lamps and the maximum transfer price paid by Division A?

C) If Division A needs 14,500 lamps instead of 11,600 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.g. 10.50.)

Just need B and C answered please and thank you!

Culver Inc. has two divisions. Division A makes and sells student desks. Division B manufactures and sells reading lamps. 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 11,600 lamps for the coming year. Division B has the capacity to manufacture 58,000 lamps annually. Sales to outside customers are estimated at 46,400 lamps for the next year. Reading lamps are sold at $12 each. 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 is $92,800. Consider the following independent situations. Your answer is correct. What should be the minimum transfer price accepted by Division B for the 11,600 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 Attempts: 1 of 3 used Using multiple attempts will impact your score. 10% score reduction after attempt 2 Suppose Division B could use the excess capacity to produce and sell externally 17,400 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 11,600 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 If Division A needs 14,500 lamps instead of 11,600 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.g. 10.50.) Minimum transfer price accepted by Division B $ per unit Maximum transfer price paid by Division A $ per unit

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