please make it readable, everything is getting cut in half and I dont want to have to repost again.

Exercise 11-3 (Algo) Transfer Pricing Basics (LO11-3] 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 Belling price per unit on the intermediate market Variable conto per unit Fixed costs per unit (based on capacity Capacity in units $ 100 $ 82 S 8 25,000 Sako Company has a H F 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 $97 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 Di n? 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 H-F Division? 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 H-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 of any between the two divisions? if left free to negotiate without interference would you expect the division managers to volumarily agree to the transfer of 5.000 speakers from the Audio Division to the H-Dwesion? d. From the standpoint of the entire company, should the transfer take place? 3. Assume the Audio Division is selling 25000 speakers per year to outside customers 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 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? Complete this question by entering your answers in the tabs below. Req 1A and IB Req 1C Req 10 Req ZA and 2B Reg 20 Req 20 Req 3A and 3B Req 30 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? Show less a Lowest acceptable transfer price Highest acceptable transfer price b Plage Req IC > accepidle ualister prices (if any) between the two divisions? If left free to negotiate without you expect the division managers to voluntarily agree to the transfer of 5,000 speakers from the Audio Division to t d. From the standpoint of the entire company, should the transfer take place? Complete this question by entering your answers in the tabs below. Req 1A and 1B Req 1c Req 1D Req 2A and 2B Req 2c Req 2D Req 3A and 3B Req 3C Req 3D 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 Audi Division to the Hi-Fi Division? Assume the Audio Division is now selling only 20,000 speakers per year to outside customer Identify the range of acceptable transfer prices (if any) There is not a range of acceptable transfer prices There is a range of acceptable transfer prices as shown below Transfer price s s Are the managers likely to agree on a transfer price? Ores ONO Req 1A and 1B Req 10 > Division? c. What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without inte you expect the division managers to voluntarily agree to the transfer of 5,000 speakers from the Audio Division to the 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 b. From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Division? c. What is the range of acceptable transfer prices (if any) between the two divisions? if left free to negotiate without inte you expect the division managers to voluntarily agree to the transfer of 5,000 speakers from the Audio Division to the H d. From the standpoint of the entire company, should the transfer take place? Complete this question by entering your answers in the tabs below. Req 1A and 1B Req 1C Req 2A and Reg 1D 2B Req 2c Req 2D Req 3A and 3B Req 3C Req 3D 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? Show less a Lowest acceptable transfer price b. Highest acceptable transfer price 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 DIVISI b. From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Audi Division? c. What is the range of acceptable transfer prices (if any) between the two divisions? if left free to negotiate without interferen you expect the division managers to voluntarily agree to the transfer of 5,000 speakers from the Audio Division to the Hi-FID d. From the standpoint of the entire company, should the transfer take place? Complete this question by entering your answers in the tabs below. Req 1A and 1B Req 1c Req 10 Req 2A and 2B Req 2c Reg 2D Reg 3A and 3B Req 30 Reg 3D 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 the Audio Division? Show less a Lowest acceptable transfer price Highest acceptable transfer price b. * LEPU nister 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? Complete this question by entering your answers in the tabs below. Reg 1A and Req ic 1B Req 1D Req 2A and 2B Reg 2 Reg 2D Req 3A and 36 Req 30 Reg 3D 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? Assume the Audio Division is selling 25,000 speakers per year to outside customers. Identify the range of acceptable transfer prices (if any) There is not a range of acceptable transfer prices There is a range of acceptable transfer prices as shown below s Transfer price s Are the managers likely to agree on a transfer price? lores ONO