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 48 21 57,808 Sako Company has a HI-FI DIVision that could use this speaker In one of its products. The Hi-FI DIVMsion will need 9,000 speakers per year. It has recelved a quote of $34 per speaker from another manufacturer. Sako Company evaluates division managers on the basis of divislonal profits. Required 1. Assume the Audlo Division is now sellng only 48,000 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 Hl-FI DIvision, what is the highest acceptable transfer price for speakers acquired from the Audio Divislon? . what is the range of acceptable transfer prices (if any) between the two dMSlons? lf left free to negotiate without interference, would you expect the division managers to voluntarly agree to the transfer of 9,000 speakers from the Audio DIVIsion to the HI-FI DIVMsIon? d. From the standpoint of the entire company, should the transfer take place? 2. Assume the Audlo Division is selling all of the speakers it can produce to outside customers. a. From the standpolnt of the Audio DivisIon, what is the lowest acceptable transfer price for speakers sold to the HI-FI DIvislon? b. From the standpoint of the Hl-FI DIvision, what is the highest acceptable transfer price for speakers acquired from the Audio Divislon? . what is the range of acceptable transfer prices (If any) between the two dMSlons? If left free to negotiate without interference, would you expect the division managers to voluntarly agree to the transfer of 9,000 speakers from the Audio DIVIsion to the HI-FI DIVMsIon? d. From the standpoint of the entire company, should the transfer take place? Req 1B Req 1D Req 2C Req 1A Req 1C Req 2A Req 2B Req 2D From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Division? Assume the Audio Division is now selling only 48,000 speakers per year to outside customers. Lowest acceptable transfer price Req 1A Req 2A Req 2C Req 1B Req 1C Req 1D Req 2B Req 2D From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Audio Division? Assume the Audio Division is now selling only 48,000 speakers per year to outside customers. Highest acceptable transfer price K Req 1A Req 1A Req 18 Req 1c Req 1D Req 2A Req 2B Req 2C Req 2D 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 9,000 speakers from the Audio Division to the Hi-Fi Division? Assume the Audio Division is now selling only 48,000 speakers per year to outside customers. Show lesS Identify the range of acceptable transfer prices (if any) OThere is not a range of acceptable transfer prices There is a range of acceptable transfer prices as shown below: Transfer price S Are the managers likely to agree on a transfer price? es No Req 1EB Complete this question by entering your answers in the tabs below. Req 2A Req 1A Req 1B Req 1C Req 1D Req 2B Req 2C Req 2D From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Division? Assume the Audio Division is selling all of the speakers it can produce to outside customers. Lowest acceptable tran K Req 1D Complete this question by entering your answers in the tabs below. Req 1A Req 1D Req 2A Req 2B Req 2D Req 18 Req 1C Req 2C From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Audio Division? Assume the Audio Division is selling all of the speakers it can produce to outside customers. ighest acceptable transfer K Req 2A Req 2C
