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Crede Inc. has two divisions. Division A makes and sells student desks. Division B manufactures and sells reading lamps. Each desk has a reading lamp

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Crede 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 $11 from an outside vendor Division A needs 9.900 lamps for the coming year. Division B has the capacity to manufacture 53,800 lamps annually. Sales to outside customers are estimated at 43.900 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 $87.000, Consider the following independent situations. (a) What should be the minimum transfer price accepted by Division B for the 9.900 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 14,850 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 9,900 lamps and the maximum transfer price paid by Division A? $ per unit Minimum transfer price accepted by Division B Maximum transfer price paid by Division A $ per unit (c) If Division A needs 16,500 lamps instead of 9,900 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, eg. 10.50.) $ per unit Minimum transfer price accepted by Division B Maximum transfer price paid by Division A $ per unit

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