Current Attempt in Progress

Culver 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 $11,600$ lamps for the coming year.

Division B has the capacity to manufacture $58,000$ lamps annually. Sales to outside customers are estimated at $46,400$ lamps for the next year. Reading lamps are sold at $$12$ each. Variable costs are $ $7$ per lamp and include $$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 $$92,800.$

Consider the following independent situations.

What should be the minimum transfer price accepted by Division B for the $11,600$ 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