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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 9,200 lamps for the coming year Division B has the capacity to manufacture 49,100 lamps annually. Sales to outside customers are estimated at 39,900 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 $86,700. Consider the following independent situations. Your answer is partially correct. Try again. What should be the minimum transfer price accepted by Division B for the 9,200 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
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