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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 110.49 from an outs.de vendor. Division A needs 11,900 lamps for the coming year. Division B has the capacity to manufacture 50.000 lamps annually. Sales to outside customers are estimated at 38,100 lamps for the next year. Reading lamps are sold at $12.28 each. Variable costs are $7 18 per lamp and include $1.04 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 $75 700 Consider the following independent situations. What should be the minimum transfer price accepted by Division B for the 11.900 'amps 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 20.800 units of a new product at a price of $7.65 per unit The variable cost for this new product is $6.28 per unit. What should be the minimum transfer price accepted by Division B for the 11,900 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 If Division A reeds 15,400 lamps instead of 11,900 during the next year, what should be the minimum transfer price accepted by Division B and the maximum transfer price paid by Divisor A? Minimum transfer price accepted by Division B per unit Maximum transfer price paid by Division A per unit

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