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part b please Each desk has a reading lampas Division A needs 11,000 lamps for the coming year, Division B has the capacity to manufacture
part b please
Each desk has a reading lampas Division A needs 11,000 lamps for the coming year, Division B has the capacity to manufacture 55.000 lamps annually. Sales to outside customers are estimated at 44.000 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 $ 88,000 Consider the following independent situations. (a) Your answer is correct What should be the minimum transfer price accepted by Division B for the 11,000 lamps and the maximum transfer price paid by Division A 5 per unit Minimum transfer price accepted by Division B $ 10 per unit Maximum transfer price paid by Division A e Textbook and Media MacBook All Suppose Division B could use the excess capacity to produce and sell externally 16,500 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 11,000 lamps and the maximum transfer price paid by Division A? $ Minimum transfer price accepted by Division B 5 per unit $ $ 10 per unit Maximum transfer price paid by Division A Step by Step Solution
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