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 recelved a quote of $113 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 lef 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, whot is the lowest acceptable transfer price for speakers sold to the Hi.Fi Division? b. From the standpoint of the HI-F Division, what is the highest acceptable transfer price for speokers acquired from the Audio Division? c. What is the range of acceptable transfer prices (ff 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 HIFF Division? b. From the standpoint of the HL.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 lef free to negotiate without interference, would you expect the dlvision managers to voluntarily ogree 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 ploce? Complete this question by entering your answers in the tabs below. 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? Division A manufactures electronic circuit boards. The boards can be sold elther to Division B of the same company or to outside customers. Last year, the following activity occurred in Division A: Sales to Division B were at the same price as sales to outside customers. The circuit boards purchased by Division B were used in an electronic instrument manufactured by that division (one boord per instrument). Division 8 incurred $280 in additional variable cost per instrument and then sold the instruments for $6 to each. Required: 1. Calculate the net operating incomes eamed by Division A, Division B, and the company as a whole. 2. Assume Division A's manufacturing capacity is 20,600 circult boards, Next yeat, Division B wants to purchase 6,900 circuit boards from Division A rather than 5,900 . (Circuit boards of this type are not available from outside sources) From the standpoint of the company as a whole, should Division A sell the 1,000 additional circuit boards to Division B or continue to sell them to outside customers? Complete this question by entering your answers in the tabs below. Calculate the net operating incomes eamed by Division A, Division B, and the company as a whole. 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 recelved a quote of $113 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 lef 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, whot is the lowest acceptable transfer price for speakers sold to the Hi.Fi Division? b. From the standpoint of the HI-F Division, what is the highest acceptable transfer price for speokers acquired from the Audio Division? c. What is the range of acceptable transfer prices (ff 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 HIFF Division? b. From the standpoint of the HL.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 lef free to negotiate without interference, would you expect the dlvision managers to voluntarily ogree 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 ploce? Complete this question by entering your answers in the tabs below. 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? Division A manufactures electronic circuit boards. The boards can be sold elther to Division B of the same company or to outside customers. Last year, the following activity occurred in Division A: Sales to Division B were at the same price as sales to outside customers. The circuit boards purchased by Division B were used in an electronic instrument manufactured by that division (one boord per instrument). Division 8 incurred $280 in additional variable cost per instrument and then sold the instruments for $6 to each. Required: 1. Calculate the net operating incomes eamed by Division A, Division B, and the company as a whole. 2. Assume Division A's manufacturing capacity is 20,600 circult boards, Next yeat, Division B wants to purchase 6,900 circuit boards from Division A rather than 5,900 . (Circuit boards of this type are not available from outside sources) From the standpoint of the company as a whole, should Division A sell the 1,000 additional circuit boards to Division B or continue to sell them to outside customers? Complete this question by entering your answers in the tabs below. Calculate the net operating incomes eamed by Division A, Division B, and the company as a whole
