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

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NEXT 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 $9.82 from an outside vendor. Division A needs 11,200 lamps for the coming year. Division B has the capacity to manufacture 50,900 lamps annually. Sales to outside customers are estimated at 39,700 lamps for the next year. Reading lamps are sold at $ 12.18 each. Variable costs are $ 7.47 per lamp and include $ 1.15 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 s 75,200. evConsider the following independent situations LeveYour answer is correct. What should be the minimum transfer price accepted by Division B for the 11,200 lamps and the maximum transfer price paid by Division A? (Round answers to 2 decmal places, e.g. 10.50.) per unit Study Maximum transfer price paid by Division A 9.82 er unit VIDEO SIMILAR EXERCISE

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