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Bramble 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 12,800 lamps for the coming year. Division B has the capacity to manufacture 64,000 lamps annually. Sales to outside customers are estimated at 51,200 lamps for the noct year. Reading lamps are sold at $12 each. Variable costs are $7 per lamp and include $2 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 $102,400. Consider the following independent situations. (a) What should be the minimum transfer price accepted by Division B for the 12,800 lamps and the maximum transfor price paid by Division A? Minimum transfer price accepted by Division B Maximum transfer price paid by Division A Suppose Division B could use the excess capacity to produce and sell externally 19,200 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 12.800 lamps and the maximum transfer price paid by Division A ? Minimum transfer price accepted by Division B Maximum transfer price paid by Division A per unit per unit eTextbook and Media Attempts: 0 of 3 used Using multiple attempts will impact your score 10 Ohiscore reduction after attempt? (s). If Division A needs 16,000 lamps instead of 12,800 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 s0) Minimum transfer price accepted by Division B Maximum iransfer price paid by Division A

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