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need help with B Crede Inc. has two divisions Division A makes and sells student desks. Division B manufactures and sells reading lamps. Each desk
need help with B 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 9,100 lamps for the coming year. Division B has the capacity to manufacture 51,900 lamps annually. Sales to outside customers are estimated at 42,800 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 $84,900. Consider the following independent situations. Your answer is correct. What should be the minimum transfer price accepted by Division for the 9, 100 lamps and the maximum transfer price paid by Division Minimum transfer price accepted by Division D $ 6 per unit Maximum transfer price paid by Division A per unit ||||||| UTILI PIILU Lepleu Uy DIVISION B for the 4,100 lamps and the maximum transfer price paid by Division A? Minimum transfer price accepted by Division B $ 6 10 per unit per unit Maximum transfer price paid by Division A eTextbook and Media Attempts: 1 of 3 used X Your answer is incorrect. Suppose Division B could use the excess capacity to produce and sell externally 13,650 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 9,100 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 7 per unit
need help with B
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