Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please and thank you! I rate ako Company's Audio Division produces a speaker that is used by manufacturers of various audio products. Sales and cost

please and thank you! I rate
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
ako Company's Audio Division produces a speaker that is used by manufacturers of various audio products. Sales and cost data on the peaker follon: Sako Company has a HI-FI Division that could use this speaker in one of its products. The HIFI Division will need 5,000 speakers per Year it has recelved a quote of $81 per speaker from another manufacturer Sako Company evaluates division managers an the basis of divisional profits. 2. Assume the Aucio Division is selling 22.500 speakers per year to outside customers a From the standpoint of the Aucio Division, what is the lowest acceptable transfer price for speakers soldta the HitFi Divion? b. From the standpoint of the HI-FI Division, What is the highest acceptable transfer price for speakers acquiredifiom the Audio Division? c. What is the range of acceptable iransfer prices (ff any) between the two divisions? if left free to negotiate without interference, would you expect the division managers to voluntanly agree to the transfer of 5.000 speakers from the Audio Divilon to the Hh-Fi Division? d From the stancipoint of the entire compony, should the transfer take place? Complete this question by entering your answers in the tabs below. Assume the Audio Division is selling 22,500 spe akers per year to outride customeri. 3. From the standpoint of the Audio. DWision. what is the love to acceptable Gansfer price for speakers rold to the Hi-Fi Division? b. From the standpoint of the Hi-Fi Divirion. what is the highest acceptable tranifer price for speakers acquared from. the Audio Divirion? Complete this question by entering your answers in the tabs below. What is the range of acceptable transfer prices (if any) betyeen the two divisions? if left free to negotiate without interference, would you expect the division managers to voluntarily agree to the transfer of 5 ,ooo speakers from the Audio Division to the Hi-Fi Division? Aurume the Audio Division if selling 22,500 speakera per year to outside customers. Complete this question by entering your answers in the tabs below. From the atandpoint of the entire company, should the transfer take place? Assume the Audio Division is selling 22,500 peakers per year to outside customers

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Value Added Auditing CERM Academy Series On Enterprise Risk Management

Authors: Greg Hutchins

4th Edition

978-0965466554

More Books

Students also viewed these Accounting questions

Question

List behaviors to improve effective leadership in meetings

Answered: 1 week ago