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Exercise 8-16 (Part Level Submission) (Video) Crede Inc. has two divisions. Division A makes and sells student desks. Division B manufactures and sells reading lamps.
Exercise 8-16 (Part Level Submission) (Video) 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 53,800 lamps annually. Sales to outside customers are estimated at 43,800 lamps for the next year. Reading lamps are sold at $11 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 $81,900 Consider the following independent situations
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