$.46 $ 8 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 Selling price per unit on the internediate market $ 64 Variable costs per unit Fixed costs per unit (based on capacity) Capacity in units 25,000 Sako 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 $61 per speaker from another manufacturer Sako Company evaluates division managers on the basis of divisional profits Required: 1. 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 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 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 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 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? 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 Audio Division to the Hi-Fi Division? d. From the standpoint of the entire company, should the transfer take place? 3. Assume the Audio Division is selling 25.000 speakers per year to outside customers 6. 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 Audio Division to the HI-FI Division? Cam thannaint the termen had the transanlarn 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 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 Audio Division to the HI-FI Division? d. From the standpoint of the entire company, should the transfer take place? 3. Assume the Audio Division 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 tho 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 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. Reg 1A and 1B Reg 1C Reg 10 Reg 2A and 28 Req 2c Req 2D Reg 3A and 3B Reg 3C Reg 3D 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 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? a Lowest acceptable transfer price b. Highest acceptable transfer price p" you expect the division managers to voluntarily agree to the transfer of 5, d. From the standpoint of the entire company, should the transfer take plac 3. Assume the Audio Division is selling 25,000 speakers per year to outsid a. From the standpoint of the Audio Division, what is the lowest acceptable b. From the standpoint of the Hi-Fi Division, what is the highest acceptable Division? c. What is the range of acceptable transfer prices (if any) between the two you expect the division managers to voluntarily agree to the transfer of 5,0 d. From the standpoint of the entire company, should the transfer take plac Complete this question by entering your answers in the tabs below. So Req Req 1A and 1B DELLO Req 1C Req 1D Req 2A and 2B Req 20 Reg 2D What is the range of acceptable transfer prices (if any) between the two divisio interference, would you expect the division managers to voluntarily agree to th Division to the Hi-Fi Division? Assume the Audio Division is now selling only 20, Identify the range of acceptable transfer prices (if any): There is not a rangtof acceptable transfer prices. There is a range of acceptable transfer prices as shown below: Transfer price Are the managers likely to agree on a transfer price? OYes O No s s Req 1A and 1B Req 1D > y--www-pow. weitwrp ... you expect the division managers to voluntarily agree to the transfer d. From the standpoint of the entire company, should the transfer take 3. Assume the Audio Division is selling 25,000 speakers per year to o a. From the standpoint of the Audio Division, what is the lowest accep b. From the standpoint of the Hi-Fi Division, what is the highest accept Division? c. What is the range of acceptable transfer prices (if any) between the you expect the division managers to voluntarily agree to the transfer o d. From the standpoint of the entire company, should the transfer take Complete this question by entering your answers in the tabs bel Req 1A and PORT 1B Req 10 Req 10 Req 2A and 2B Req 2C Req 2D Assume the Audio Division is selling 22,500 speakers per year to outside a. From the standpoint of the Audio Division, what is the lowest acceptab Division? b. From the standpoint of the Hi-Fi Division, what is the highest acceptab Audio Division? es a. Lowest acceptable transfer price b. Highest acceptable transfer price