Novak Inc. has two divisions. Division A makes and sells student desks. Division B manufactures and sells reading lamps. Your answer is partially correct.

If Division A needs $12,500$ lamps instead of $10,000$ 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$.10\mathrm{.}50.)$

Minimum transfer price accepted by Division B

per unit

Maximum transfer price paid by Division A

$

per unit

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 $50,000$ lamps annually. Sales to outside customers are estimated at $40,000$ 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 $$80,000.$

Consider the following independent situations.