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

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Chapter 10 Sako Company's Audio Division produces a speaker that is used by manufacturers of the speaker follow various audio products Sales and cost data on 10 port selling price per unit on the intermediate narket 60 42 Variable costs per unit Fixed costs per unit (based on capacity) Capacity in units 25,000 Sako Company has a Hi Fi Dvtsion that could use this speaker inone of as products. The Hi-Fi Dvision will need 5,000 speakers per year It has received a quote of $57 per speaker from another menulactuer Sako Company evaluates division managers on the basis of dvisional profts Required 1 Assume the Audio Division is now selling only 20,000 speakers per year to outside customers a From the standpoint of the Audio Division, whet is the lowest acceptable transfer price for speakers sold to the Hi-Fi Division? b From the standpoint of the HiFi Division, what is the ighest acceptable transfer price for speakers acquired from the Audio Division? c What ls the range of aceptable tranisles prices of aybt the two divesong et free to negotiate without interference woued you expect the division managers to voluntarily agree to the transfer of 5000 speakers from the Audio Division to the Hi-Fi Division ndeencesd From the standpoint of the entire company, should the transfer toke place 2 Assume the Audio Division is selling all of the speakers it can produce to outside customers From the standpoint of the Audio Div sion what is the lovveM occeptalle bans!" pice tr speokers sold ithe H-Fi Divnaon? b From the standpoint of the Fi Division, what is the highest acceptable transler price for speakers acqured from the Auho what 's the 'ange of acceptable ran 1-prices ? an between the two divise si en rec to r Oti te w that in erkee en ta you espect the division managers to volurtarily agree to the trarafer 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

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