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2 1 point Use the following information for questions 2, 3, 4, 5, and 6 Whitewater Company's Audio Division produces a speaker that is
2 1 point Use the following information for questions 2, 3, 4, 5, and 6 Whitewater Company's Audio Division produces a speaker that is used by manufacturers of various audio products. Sales and cost data on the speaker follow: Selling price per unit on the intermediate market Variable cost per unit Fixed costs per unit (based on capacity) Capacity in units $120 $102 $8 25,000 Whitewater Company has a Hi-Fi Division that could use this speaker in one of its products. The Hi-Fi Division will need 5,000 speakers per year. It has received a quote of $117 per speaker from another manufacturer. Whitewater Company evaluates division managers on the basis of divisional profits. Assume the Audio Division sells only 20,000 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 Hi-Fi Division? Type your answer....
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