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Please answer all parts a, b, and c please. Crede Inc. has two divisions. Division A makes and sells student desks. Division B manufactures and

Please answer all parts a, b, and c please. image text in transcribed
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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 $11 from an outside vendor. Division A needs 9.900 lamps for the coming year. Division B has the capacity to manufacture 53,800 lamps annually, Sales to outside customers are estimated at 43,900 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 B is $87,000. Consider the following independent situations. (a) What should be the minimum transfer price accepted by Division B for the 9,900 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 $ per unit (b) Suppose Division B could use the excess capacity to produce and sell externally 14,850 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 Bfor the 9.900 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 $ per unit (c). If Division A needs 16,500 lamps instead of 9.900 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, eg 10.50.) Minimum transfer price accepted by Division B $ per unit Maximum transfer price paid by Division A $ per unit

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