STANDARD VIEW OURCES PRINTER VERSION BACK Ampro Inc. has two divisions. Division A makes and sells student desks. Division B manufactures and sells reading lamps. NEXT Each desk has a reading lamp as one of its components. Division A needs 10,500 lamps for the coming year and can purchase reading lamps at a cost of $15 from an outside vendor. Division has the capacity to manufacture 51,900 lamps annually. Sales to outside customers are estimated at 41,100 lamps for the next year. It sells reading lames for $16 each Variable costs are $13 per lamp and include si of variable sales costs that are not incurred division B sells lamps internally to division A The total amount of fixed costs for division B is $76,000 Consider the following independent situations by Study Your answer is partially correct. Try again. What should be the minimum transfer price division B accepts for the 10,800 lamps and the maximum transfer price division A pays? Minimum transfer price Maximum transfer prices 1 5 Your answer is incorrect. Try again. Suppose division could use the excess capacity to produce and sell externally 21,600 units of a new product at a price of $13 per unit. The variable cost for this new product is $11 per unit. What should be the minimum transfer price division B accepts for the 10,000 lamps and the maximum transfer price division A pays? Minimum transfer price Maximum transfer price Your answer is partially correct. Try again. If division A needs 16,200 lamps instead of 10,800 during the next year what should be the minimum transfer price division 1 accepts and the maximum transfer price division A pays? (Round minimum transfer price to 2 decimal places, e.g. 15.25.) 13.67 per unit Minimum transfer price 15 per unit Maximum transfer price SU p er unit