Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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: Selling

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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: Selling price per unit on the intermediate market Variable costs per unit Fixed costs per unit (based on capacity) Capacity in units $ $ $ 92 74 8 25, eee 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 received a quote of $89 per speaker from another manufacturer. Sako Company evaluates division managers on the basis of divisional profits. Complete this question by entering your answers in the tabs below. Reg 1A and Req 10 Req 2A and 1B Req 10 Reg 3A and 2B Reg 20 Req 20 3B Req 3C 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 now selling only 20,000 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 Are the managers likely to agree on a transfer price? Yes No Chech Complete this question by entering your answers in the tabs below. Reg 1A and 1B Req 10 Req 10 Reg 2A and 2B Req 20 Req 2D Req 3A and 38 Reg 3 Reg 3D From the standpoint of the entire company, should the transfer take place? Assume the Audio Division is now selling only 20,000 speakers per year to outside customers. Show less Transfer should take place Transfer should not take place. Check Complete this question by entering your answers in the tabs below. Req 1A and 1B Req 1C ReglzA and Req 1D 2B Reg 20 Req 2D Reg 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 Highest acceptable transfer price b. Complete this question by entering your answers in the tabs below. Req 1A and 1B Reg 10 Req 10 Reg 2A and 2B Redac Reg 2D Reg 3A and 3B Reg 3C 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 22,500 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: Transfer price 5 Are the managers likely to agree on a transfer price? Yes No CH Complete this question by entering your answers in the tabs below. Reg 1A and 1B Req 10 Reg 10 Reg 2A and 2B Req 2c Req 200 Req 3A and 3B Reg 30 Reg 3D From the standpoint of the entire company, should the transfer take place? Assume the Audio Division is selling 22,500 speakers per year to outside customers. Transfer should take place. Transfer should not take place. Complete this question by entering your answers in the tabs below. Reg 10 Reg 3C Req 3D Req 1A and 1B Reg 10 Req 2A and 28 Req 2c Reg 2D Req3A and 3B 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. Complete this question by entering your answers in the tabs below. Req 1A and 18 Req 1C Reg 10 Reg 2A and 28 Reg 2C Reg 2D Reg 3A and 3B Reg 3C 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: Transfer price Are the managers likely to agree on a transfer price? Yes No Checkm Complete this question by entering your answers in the tabs below. Req 3A and 3B Reg 3D 1B Req 1A and Req 10 Reg 10 Req 2A and 2B Reg 20 Req 2D Reg 3C 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: Transfer price 5 Are the managers likely to agree on a transfer price? Yes No Complete this question by entering your answers in the tabs below. Reg 1A and Req 10 1B Req 1D Reg 2A and Reg 3A and 28 Reg 2c Req 2D Besc Rag JO From the standpoint of the entire company, should the transfer take place? Assume the Audio Division is telling 25,000 speakers per year to outside customers. Transfer should take place. Transfer should not take place

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_2

Step: 3

blur-text-image_3

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

Intermediate accounting

Authors: J. David Spiceland, James Sepe, Mark Nelson

7th edition

978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094

More Books

Students also viewed these Accounting questions

Question

Identify factors that make obedience more likely.

Answered: 1 week ago

Question

suggest a range of work sample exercises and design them

Answered: 1 week ago