Cheyenne 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 $8,800$ lamps for the coming year.

Division B has the capacity to manufacture $44,000$ lamps annually. Sales to outside customers are estimated at $35,200$ lamps for the next year. Reading lamps are sold at $$12$ each. Variable costs are $$7$ per lamp and include $$2$ of variable sales costs that are not incurred if lamps are sold internally to Division A$.$ The total amount of fixed costs for Division B is $$70,400.$

Consider the following independent situations.

$($a$)$

What should be the minimum transfer price accepted by Division B for the $8,800$ 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

$($b$)$

Suppose Division B could use the excess capacity to produce and sell externally $13,200$ 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 $8,800$ 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

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$($c$)$

If Division A needs $11,000$ lamps instead of $8,800$ 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