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15 Cemy w Exercise 11-3 (Algo) Transfer Pricing Basics (L011-3) Sako Company's Audio Division produces a speaker that is used by manufacturers of various do

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15 Cemy w Exercise 11-3 (Algo) Transfer Pricing Basics (L011-3) Sako Company's Audio Division produces a speaker that is used by manufacturers of various do products Series and co the speaker follow 023 son S price per the interest Varia per unit CON and on capacity Copy Sako Company has a Division that could use this speaker in one of its products. The Dion will need 5.000 per per year. It has received a quote of $89 per speaker from another manufacturer Sako Company events in managers on the basis of divisional profits Required 1. Assume the Audio Division sets only 20.000 speakers per year to outside customers a. From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hivi! b. From the standpoint of the Hi-Fi Division what is the highest acceptable transfer price for servers acquired from the Audio Division? What is the range of acceptable transfer prices of any between the two divisions of free to negotiate without interence would you expect the division managers to voluntarily agree to the transfer of 5.000 pesers from the Audio Division to the Hin? d. From the standpoint of the entire company should the transfer take place? 2. Assume the Audio Division is selling 22.500 speakers per year to outside customers a. From the standpoint of the Audio Division what is the lowest acceptable transfer price for speakers sold to the Division the most 13 023 2. Assume the Audio Division isseling 22.500 speakers per year to outside customers From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the HiFi Division b. From the standpoint of the HI-FI Division what is the highest acceptable transfer price for speakers acquired from the Audio Division What is the range of acceptable transfer prices (if any between the two divisions of lett free to negotiate without interference would you expect the division managers to voluntarily agree to the transfer of 5.000 speakers from the Audio Division to the vision d. From the standpoint of the entire company should the transfer take place? 3. Assume the Audio Division is seting 25.000 speakers per year to outside customers. a. From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Division b. From the standpoint of the Division, what is the highest acceptable transfer price for speakers acquired from the Audio Division What is the range of acceptable transfer prices of any between the two divisions on tee to negotiate without interference, would you expect the division managers to voluntarily agree to the transfer of 5.000 speakers from the Audio Divion to the Moon d. From the standpoint or the entire company should the transfer take place? Complete this question by entering your answers in the tabs below. Reg LA and 16 Reg D Reg 10 2A and 28 Regac Res 20 Heo 3A and Reg C Raq 3D Assume the Audio Division sell only 20,000 speakers per you to outside customers a. From the standpoint of the Audie Division, what is the lowest acceptable transfer price for speakers said to the Division From the standpoint of the HI-F Division, what is the highest acceptable transfer price for speakers acquired from the Audio Division 15 you expect the division managers to voluntary agree to the traster of Speakers tromme AD Utomers d. From the standpoint of the entire company, should the transfer take place? Checimy Complete this question by entering your answers in the tabs below 0.23 Hit Reg 1A and 10 Reg 10 Reg 10 Reg 2A and 25 Reg 2c Res 20 Re DA and Reg 3C Rego Assume the Audio Division sells only 20,000 speakers per year to outside customers a. From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers said to the Division? b. From the standpoint of the H-F Division, what is the highest scoaptable transfer price for speakers acouired from the Audio Division Print Reference a. Lowest acceptable transfer price Highest acceptable transfer price Res 10 Hary 15 you expect the division managers to voluntary agree to the transfer of speakers from the Audio Don to me d. From the standpoint of the entire company, should the transfer take place? Chem Complete this question by entering your answers in the tabs below. 0.23 points Print Req1A and 18 Reg 1C Reg 10 Red 2A and 25 Reg 20 Reg IA and Reg 20 38 Red What is the range of acceptable transfer prices (lf any) between the two divisions of free to negotiate without interference, would you expect the division managers to voluntarily agree to the transfer of 5,000 cakers from the Audio Division to the Hi-Fi Division? Assume the Audio Division is now seling only 20,000 speakers per year to outside customers Identify the range of acceptable transfer prices of any There is not a range of acceptable transfer prices There is a range of acceptable transfer prices as shown below s Transfer price Reference Are the managers likely to agree on a transfer price? Yes No Seved Help Save it Sub Check my w Division? c. What is the range of acceptable transfer prices any between the two divisions et free to negotiate without interference would you expect the division managers to voluntarily agree to the transfer of 5,000 speakers from the Audio Division to the Division d. From the standpoint the entire company, should the transfer take place? Complete this question by entering your answers in the tabs below. 25 Regu 30 Reg 1A and Reg 10 18 Reg 10 Reg 2A and Reg 2c Road Reg 20 From the standpoint of the entire company, should the transfer take place? Assume the Audio Division is now selling only 20.000 speakers per year to outside customers. Show less Transfer should take place Transfer should not take place Complete this question by entering your answers in the tabs below. 0.23 points Book Hint Req 1A and 18 Req 1C Reg 1D Reg 2A and 2B Req 2c Req 2D Reg 3A and 36 Req3C Reg 30 Assume the udio Division is selling 22,500 speakers per year to outside customers. a. From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the HR Division? b. From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Audio Division? Print References Show less Lowest acceptable transfer price Highest acceptable transfer price b. Reg 1A and 1B Req 10 Req 1D Reg 2A and 28 Req 2c Reg 20 Reg 3A and 3B Reg 3C Reg 3D What is the range of "ceptable 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 Audio Division to the HI-FI Division? Assume the Audio Division is selling 22,500 speakers per year to outside customers Identify the range of acceptable transfer prices (if any): There is not a range of acceptable transfer prices There is a range of acceptable transfer prices as shown below: s Transfer price s Are the managers likely to agree on a transfer price? 10Yes ONO 0 Speakers from the Audio Division to the HI-FI Division? d. From the standpoint of the entire company, should the transfer take place? Complete this question by entering your answers in the tabs below. Re4 1A and 1B Req 10 Reg 10 Req 2A and 28 Reg 20 Reg 2D Reg 3A and 38 Reg 3C Req 3D es From the standpoint of the entire company, should the transfer take place? Assume the Audio Division is selling 22,500 speakers per year to outside customers. Transfer should take place, Transfer should not take place. * meny your answers in the tabs below. Reg 1A and 1B Req 1C Req 1D Req 2A and 2B Req 2c Req 2D Reg 3A and 3B Reg 3C Reg 3D Assume the Audio Vision is selling 25,000 speakers per year 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? Show less a. Lowest acceptable transfer price Highest acceptable transfer price b. 15 you expect the division managers to voluntary agree to the transfer of UUU speakers trom the ADO LIVEON to me shuone d. From the standpoint of the entire company, should the transfer take place? Checimo Complete this question by entering your answers in the tabs below. 5.23 Reg 203A and Reg 1A and 15 Reg 10 Reg 2A and Reg 10 28 Reg 20 Rec Res 30 What is the range of acceptable transfer prices of any) between the two divisione? left free to negotiate without interference, would you expect the division managers to voluntarily agree to the transfer of 5,000 per from the Audio Division to the Hi-Fi Division? Assume the Audio Division is seling 25,000 speakers per year to outside o tome Identify the range of acceptable transfer prices of any There is not a range of acceptable transfer prices There is a range of acceptable transfer prices as shown below Transfer price 5 Are the managers likely to agree on a transfer price Yes No O piacer Complete this question by entering your answers in the tabs below. ces Reg C Reg 20 eq IA and Req 1C Reg 1D Reg 2A and 28 Reg 2c Red 3A and Req 2D 38 From the standpoint of the entire company, should the transfer take place? Assume the Audio Division is selling 25,000 speakers per year to outside customers Transfer should take place Transfer should not take place

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