View the step-by-step solution to:

a Exercise 22-16 Crede Inc. has two divisions. Division A makes and sells student desks. Division B manufactures and sells reading lamps. Each desk

9979232D-7817-48AF-ACFF-3C43C69D7965.jpeg


Really needed help on this one! Please reply soon!

9979232D-7817-48AF-ACFF-3C43C69D7965.jpeg

a Exercise 22-16 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 $ 10.4? from an outside vendor.
Division A needs 12,000 lamps for the coming year. Division B has the capacity to manufacture 50,900 lamps annuallv. Sales
to outside customers are estimated at 33.900 lamps for the next vear.
Reading lamps are sold at $ 11.95 each. variable costs are $ 6.?0 per
lamp and include $ 1.33 of variable sales costs that are not incurred if
lamps are sold internallv to Division A. The total amount of fixed costs
for Division B is $ 04,?00 . Consider the following independent situations. What should be the minimum transfer price accepted by Division B for
the 12,000 lamps and the maximum transfer price paid bv Division A?
(Round answers to 2 decimal' places, e.g. 10.50.) I'I'linimum transfer price accepted bv Division E $ D-EF unit
I'I'leximum transfer price paid is; Division A i :] per um Suppose Division B could use the excess capacitv to produce and sell
externally 20,400 units of a new product at a price of $ 190 per unit.
The variable cost for this new product is $ 5.30 per unit. What should be
the minimum transfer price accepted by Division B for the 12,000 lamps
and the maximum transfer price paid by Division A? (Round answers
to 2 decimal places, e.g. 10.50.) Minimum transfer price accepted bv Division E $ :] par unit
Maximum transfer price paid 0v Division A $ :] per unit If Division A needs 15,900 lamps instead of 12,000 during the next vear,
what should be the minimum tiansfer price accepted bv Division B and
the maximum transfer price paid bv Division A? (Round answers to .2
decimai' places, e.g. 10.50.} Minimum o'snsi‘er price accepted bi- Division E $ [:1 per unit
Maximum transfer price paid by Division A $ Per. unit

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question