S Help System Announcements CALCULATOR RACK NEXT PRINTER VERSION Crede Inc. has two divisions. Division A makes and sells student desks. Division 8 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 9,800 tamps for the coming year. Division B has the capacity to manufacture 46,500 lamps annually, Sales to outside customers are estimated at 36,700 tamps for the next year. Reading lamps are sold at $11 each. Variable costs are $8 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 $83,300. Consider the following independent situations. What should be the minimum transfer price accepted by Division B for the 9,800 tamps and the maximum transfer price paid by Division A? Minimum transfer price accepted by Division 8 per unit Maximum transfer price paid by Division A per unit Suppose Division B could use the excess capacity to produce and sell externally 14,700 units of a new product at a price of $7 per unit. The variable cost for this new product $5 per unit. What should be the minimum transfer price accepted by Division for the 9,800 tamps 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 5 per unit If Division A needs 14,700 lamps instead of 9,800 during the next year, what should be the minimum transfer price accepted by Division and the maximum transfer price paid by Division A? (Round answers to 2 decimal places, e.g. 10.30.) Minimum transfer price accepted by Division B 5 per unit Maximum transfer price paid by Division A per unit