Question: I need the Minimum transfer price acceptwd by Division B in part C Martinez Inc has two divisions. Division A makes and sells student desks,

Martinez Inc has two divisions. Division A makes and sells student desks, Division B manufactures and seils 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 9,600 lamps for the coming year. Division B has the capacity to manufacture 48,000 lamps annually. Sales to outside customers are estimated at 38,400 lamps for the nect year. Reading lamps are soid 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 $76,800. Consider the following independent situations. (a) Your answer is correct. What should be the minimum transfer price accepted by Division B for the 9,600 lamps and the maximum transfer price paid by Division A? Minimum transfer price accepted by Division 8 Maximum transfer price paid by Division A eTextbook and Media Solution Usinig muttiple attempts has impacted your score. 10% score reduction after attempt 2 Suppose Division B could use the excess capacity to produce and sell externally 14,400 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 9,600 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 eTextbook and Media Solution Using multiple attempts has impacted your score Attempts: 3 of 3 used 10% score reduction after aftempt 2 (c) Your answer is partially correct. It Division A needs 12,000 lamps instead of 9,600 during the next year, what should be the minimum transfer price accepted by Divisian B and the maximum transfer price paid by Division AP (Round answers to 2 decimal places, e. 10.50.) Minimum transfer price accepted by Divisian B Makinum transfer price paid by Division A eTextbook and Media 109 szare reduction afier attempt 2
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