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10 Sako Company's Audio Division produces a speaker that is used by manufacturers of various audio products. Sales and cost data on the speaker follow

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10 Sako Company's Audio Division produces a speaker that is used by manufacturers of various audio products. Sales and cost data on the speaker follow 10 points Selling price per unit on the intermediate market Vared losttr onit (based on capacity)2 $60 $42 costs per unit Fixed costs per unit (based on capacity Capacity in units 25,000 Sako Company has a Ht Fi Dvision that could use this speaker in one of its products The Hi Fi?ision wit need 50 O speakers per year. lt has received a quote of $57 per speaker from another manufacturer. Sako Company evaluates division managers on the basis of divisional profits 1. Assume the Audio Division is now selling only 20,000 speakers per yeer to outside customers a From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Division? b From the standpoint of the Hi Fi Division, what is the highest acceptable transfer price for speakers acquired from the Audio Division? c What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without interference, would you expect the division managers to voluntaily agree to the transfer of 5.000 speakers from the Audio Division to the Hi Fi Division? d. From the standpoint of the entire company, should the transfer take place? 2 Assume the Audio Division is selling all of the speakers it can produce to outside customens a From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Division? b From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Audio Division? c What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without interference, would you expect the division managers to voluntarily agree to the transfer of 5,000 speakers from the Audid Division to the Hi-Fi Division? d From the standpoint of the entire company, should the transfer take place

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