Bramble 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 9,100 lamps for the coming year Division B has the capacity to manufacture 51,900 lamps annually Sales to outside customers are estimated at 42,800 lamps for the next year Reading lamps are sold at $11 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 $84,900 Consider the following independent situations What should be the minimum transfer price accepted by Division B for the 9,100 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 Suppose Division B could use the excess capacity to produce and sell externally 13,650 units of a new product at a price of $7 per unit The variable cost for this new product is $5 per unit What should be the minimum transfer price accepted by Division B for the 9,100 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 14,560 lamps instead of 9,100 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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Bramble Inc. has two divisions. Division A makes and sells student desks. Division B manufactures and sells reading lamps. Each desk has a reading lamp

Bramble 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 9,100 lamps for the coming year. Division B has the capacity to manufacture 51,900 lamps annually. Sales to outside customers are estimated at 42,800 lamps for the next year. Reading lamps are sold at $11 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 $84,900. Consider the following independent situations.

What should be the minimum transfer price accepted by Division B for the 9,100 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

Suppose Division B could use the excess capacity to produce and sell externally 13,650 units of a new product at a price of $7 per unit. The variable cost for this new product is $5 per unit. What should be the minimum transfer price accepted by Division B for the 9,100 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 14,560 lamps instead of 9,100 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.)