Crede 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 10,400 lamps for the coming year. Division B has the capacity to manufacture 46,400 lamps annually. Sales to outside customers are estimated at 36,000 lamps for the next year. Reading lamps are sold at $ 11 each. Variable costs are $ 7 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 $ 87,100. Consider the following independent situations.

A) What should be the minimum transfer price accepted by Division B for the 10,400 lamps and the maximum transfer price paid by Division A?

Minimum transfer price accepted by Division B		$ 6 per unit
Maximum transfer price paid by Division A		$ 10 per unit

B) Suppose Division B could use the excess capacity to produce and sell externally 15,600 units of a new product at a price of $ 7 per unit. The variable cost for this new product is $ 5 per unit. What should be the minimum transfer price accepted by Division B for the 10,400 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		$ ____ per unit