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Swifty inc, has two divisions. Division A makes and sells student desk. Division B manufactures and sells reading lamps. Fach deskhas a reading lamp as one of its components. Divion Aca purchase reading lamps at a cast of 510 from an outside vendor. Division A needs 12,200 lanips for the coming yearl. Division B has the capacity to manufacture 61000 iamps annually 50 lis to outsidecustorners are estimated at 48,800 lamps for the nest year Reading lamps are sold at $12 each. Variable costs are $7 per lamp and include $12 of variable faics costs that are not incurred if tamps aresold internaily to Division A The total amount of fored costs for Division 8 is $97.600. Consider the following independent situations. What should be the minimant teansfer price accepted by Divisian 3 for the 122001 anps and the makimum transfor price paid by Division A? Minimum transfer price accepted by Evision B Maxizum transfer price paid by Division A Soppose Division Bl could use the exess capacity to produce and setl externally 18300 units of a rewwprocuct at a unit serling price of $7. The unit variable cost for this new procuct is $5. What should be the minimum transfer price accepted by bivisice 8 for the 12.200 lamps and the madmum tranisfer price paid by Division AT? Minimum transfer price accepted by Division B Mavimum transfer price pakid by Division A. eTextbook and Media If Dovision A nueds 15.250 lamps instead of 12.200 during the novt vear, what shou d be the minimuin transfer price accepted ty Division B and the maximum transier price paid ly Dovision At (Round orewers to 2 decimal plocis es 10.501) Minimuen transfer carice accepted by Division 1 : Mowmum tranafer price naid try Division A per unit

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