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Current Attempt in Progress 2 Concord Inc. has two divisions. Division A makes and sells student desks. Division B manufactures and sells reading lamps.
Current Attempt in Progress 2 Concord 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 11,400 lamps for the coming year. Division B has the capacity to manufacture 57,000 lamps annually. Sales to outside customers are estimated at 45,600 lamps for the next year. Reading lamps are sold at $12 each. Variable costs are $7 per lamp and include $3 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 $91,200. Consider the following independent situations. - Your answer is partially correct. If Division A needs 11,875 lamps instead of 11,400 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.) +A $ +A 4.00 per unit $ 10.00 per unit
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