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Question 13 of 16 -/2 E Concord Inc. has two divisions. Division A makes and sells student desks. Division B manufactures and sells reading
Question 13 of 16 -/2 E Concord 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 11,400 lamps for the coming year. Division B has the capacity to manufacture 57,000 lamps annually. Sales to outside customers are estimated at 45.600 lamps for the next year. Reading lamps are sold at $12 each. Variable costs are $7 per lamp and include $3 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 $91.200. Consider the following independent situations. What should be the minimum transfer price accepted by Division B for the 11.400 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 S per unit
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