Flint 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 11,800 lamps for the coming year. Division B has the capacity to manufacture 59,000 lamps annually. Sales to outside customers are estimated at 47,200 lamps for the next year. Reading lamps are sold at $12 each. Variable costs are $7 per lamp and include $2 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 $94,400. Consider the following independent situations. (a) What should be the minimum transfer price accepted by Division B for the 11,800 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 (b) Suppose Division B could use the excess capacity to produce and sell externally 17,700 units of a new product at a unit selling price of $7. The unit variable cost for this new product is $5. What should be the minimum transfer price accepted by Division B for the 11,800 lamps and the maximum transfer price paid by Division A? (c) Minimum transfer price accepted by Division B $ per unit Maximum transfer price paid by Division A $ per unit eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer Using multiple attempts will impact your score. 10% score reduction after attempt 2 If Division A needs 14,750 lamps instead of 11,800 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