Blue Spruce 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 $12,600$ lamps for the coming year.

Division B has the capacity to manufacture $63,000$ lamps annually. Sales to outside customers are estimated at $50,400$ 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 $$100,800.$

Consider the following independent situations.Your answer is partially correct.

If Division A needs $15,750$ lamps instead of $12,600$ 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$.10\mathrm{.}50.)$

Minimum transfer price accepted by Division B $,$$

per unit

Maximum transfer price paid by Division A

$

per unit

eTextbook and Media