Crede Inc. has two divisions, Division A and Division B. 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 $9.60 from an outside vendor Division A needs 11,500 lamps for the coming year.

Division B has the capacity to manufacture 50,300 lamps annually. Sales to outside customers are estimated at 38,800 lamps for the next year. Reading lamps are sold at $11.62 each. Variable costs are $6.83 per lamp and include $1.44 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 $79,900

Consider the following independent situations.

(a) What should be the minimum transfer price accepted by Division B for the 11,500 lamps and the maximum transfer price paid by Division A? (Round answers to 2 decimal places, e. g. 10.50.)

(b) Suppose Division B could use the excess capacity to produce and sell externally 20,900 units of a new product at a price of 8.46 per unit. The variable cost for this new product is 6.22 per unit. What should be the minimum transfer price accepted by Division B for the 11,500 lamps and the maximum transfer price paid by Division A? (Round answers to 2 decimal places, e. g. 10.50.)