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Exercise 21-16 Crede Inc. has two divisions. Division A makes and sells student desks. Division B manufactures and sells reading lamps. Each desk has a

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Exercise 21-16 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. Diyision A can purchase reading lamps at a cost of $9 from an outside vendor. Division A needs 10,300 lamps for the coming year. Division B has the capacity to manufacture 46,900 lamps annually. Sales to outside customers are estimated at 36,600 lamps for the next year. Reading lamps are sold at $13 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. What should be the minimum transfer price accepted by Division B for the 10,300 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 Suppose Division B could use the excess capacity to produce and sell externally 15,450 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 10,300 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 needs 15,450 lamps instead of 10,300 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.) Minimum transfer price accepted by Division B $ per unit Maximum transfer price paid by Division A per unit

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