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Sheffield Inc. has two divisions. Division A makes and sells student desks, Division B manufactures and sells reading lamps. Each desk has a reading lamp

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Sheffield 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 11,000 tamps 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 S 2 of variable sales costs that are not incurred it 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) 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 Type here to search (a) 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 $ per unit Maximum transfer price paid by Division A $ per unit e Textbook and Media (b) 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 $ per unit Maximum transfer price paid by Division A $ per unit If Division A needs 13,750 lamps instead of 11.000 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, es. 10.50.) Minimum transfer price accepted by Division B $ per unit Maximum transfer price paid by Division A $ per unit

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