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Pina Colada 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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Pina Colada 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 10.200 lamps for the coming year Division B has the capacity to manufacture 51,000 lamps annually. Sales to outside customers are estimated at 40,800 lamps for the next year. Reading lamps are sold at $ 12 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 Bis $ 81,600. Consider the following independent situations. (a) Your answer is correct What should be the minimum transfer price accepted by Division B for the 10,200 lamps and the maximum transfer price paid by Division A? Minimum transfer price accepted by Division B $ 6 per unit Maximum transfer price paid by Division A $ 10 per unit Suppose Division B could use the excess capacity to produce and sell externally 15,300 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 10,200 lamps and the maximum transfer price paid by Division A? $ Minimum transfer price accepted by Division B per unit $ per unit Maximum transfer price paid by Division A

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