Baird Radio Corporation is a subsidiary of Salem Companies. Baird makes car radios that it sells to retail outlets. It purchases speakers for the radios from outside suppliers for $71 each. Recently, Salem acquired the Walton Speaker Corporation, which makes car radio speakers that it sells to manufacturers. Walton produces and sells approximately 120,000 speakers per year, which represents 70 percent of its operating capacity. At the present volume of activity, each speaker costs $58 to produce. This cost consists of a $48 variable cost component and an $10 fixed cost component. Walton sells the speakers for $75 each. The managers of Baird and Walton have been asked to consider using Walton's excess capacity to supply Baird with some of the speakers that it currently purchases from unrelated companies. Both managers are evaluated based on return on investment. Walton's manager suggests that the speakers be supplied at a transfer price of $75 each (the current selling price). On the other hand, Baird's manager suggests a $71 transfer price, noting that this amount covers total cost and provides Walton a healthy contribution margin. Required a. Based on market prices suggested by the managers, which transfer price would you recommend? Transfer price