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 $$10$ from an outside vendor. Division A needs $10,000$ lamps for the coming year.

Division B has the capacity to manufacture $50,000$ lamps annually. Sales to outside customers are estimated at $40,000$ lamps for the next year. Reading lamps are sold at $$12$ each. Variable costs are $$7$ per lamp and include $$1$ of variable sales costs that are not incurred if lamps are sold internally to Division $A.$ The total amount of fixed costs for Division B is $$80,000.$

Consider the following independent situations.