please help *Exercise 22-16 (Part Level Submission) Crede Inc. has two divisions
ID: 2431658 • Letter: P
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*Exercise 22-16 (Part Level Submission) 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 $9.83 from an outside vendor. Division A needs 11,300 lamps for the coming year Division B has the capacity to manufacture 49,900 lamps annually. Sales to outside customers are estimated at 38,600 lamps for the next year. Reading lamps are sold at $ 12.35 each. Variable costs are 7.50 per lamp and include $ 1.36 or 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 $75,700 Consider the following independent situations. What should be the minimum transfer price accepted by Division Bfor the 11,300 lamps and the maximum transfer price paid by Dn A? (Round answers to 2 decimal places, e.g. 10.50.) Minimum transfer price accepted by Division B [ Maximum transfer price paid by Division A D per unit per unit Attempts: 0 of 3 used The parts of this question must be completed in order. This part will be available when you complete the part above. The parts of this question must be completed in order. This part will be available when you complete the part above.Explanation / Answer
Minimum Tranfer Price Shall be the variable Cost =$7.50-1.36=6.14
Maximum Transfer Price Shall be the external Price that Division A pays= $9.83
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