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 internediate market Variable costs per unit Fixed costs per unit (based on capacity Kapacity in units $ 102 $ 8 25, ead 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 received a quote of $117 per speaker from another manufacturer Sako Company evaluates division managers on the basis of divisional profits. Regulred: 1. Assume the Audio Division sells only 20.000 speakers per year to outside customers. 3. From the standpoint of the Audio Division What is the lowest acceptable transfer price for speakers sold to the Hi-Fi Division? d. From the standpoint of the Hi-F 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 comp 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 Hi-Fi Division? b. From the standpoint of the Hi-Fi Division what is the nighest 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? Assume the Audie Division is selling 25.000 speakers per year to outside customers From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Division? 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 xlf any between the two divisions? If Jeft 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? s. From the standpoint of the entire company, should the transfer take place? Complete this question by entering your answers in the tabs below. Reg 14 and 15 Reg 10 Reg to Reg 2A and 2B Req 2c Rey 20 Reg BA and 3B Ram 3G Reg 3D Assume the Audio Division is selling 22,500 speakers per year to outside customers. 2. 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 seseptable transfer price Highest acceptable transfer price $ 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 $ 12 $ 182 $ g 25 geg Sako Company has a Hi-Fi Division that could use this speaker in one of its products. The H-Fi Division will need 5.000 speakers per year. It has received a quote of $117 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?fileft 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, what is the lowest acceptable transfer price for speakers sold to the H-Fi Division? b. From the standpoint of the Hi-F 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? 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, wnat is the highest acceptable transfer price for speakers acquired from the Audio Division What is the range of acceptable transfer prices Gany 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 1B Req 10 Req 10 Reg 2A and 28 Reg 20 Reg 2D Reg 3A and 3B Rea 30 Reg 3D What is the range of acceptable transfer prices (if any) between the the 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 Audie Division is selling 22,500 speakers per year to outside customers. identify the range of coeptable transfer prices (if any) There is not a range of acceptable transfer prices. There is a range of acceptable transfer prices as shown below 3 Transfer price S Are the managers likely to agree on a transfer price? Cres NO 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 $ 126 $ 102 5 25, ege 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 $117 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 left free to negotiate without interference, would you expect the divisien 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, 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 de From the standpoint of the entire company should the transfer take place? ear to 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-FT 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 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-FT. 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 1B Reg 10 Reg 16 Reg 2A and 2B Reg 2c Req 2D Reg 3A and 3B Reg 3 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 shoud not take place. 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 120 3 182 $ 18 25, ced 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 $117 per speaker from another manufacturer. Sako Company evaluates division managers on the basis of divisional profits. Requlred: 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? 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? 2 Assume the Audio Division is selling 22.500 speakers per year to outside customers. 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 nighest acceptable transfer price for speakers acquired from the Audio Dirision What is the range of acceptable transfer prices (if anybetween the two divisions? If teft 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? 6. From the standpoint of the entire company should the transfer take place Complete this question by entering your answers in the tabs below. Regat Reg 1A and 18 Reg 2A and 28 Req 1C Reg 20 Reg 2D Reg BA and 38 Reg 30 Req 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. Ren 20 RC 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 $ 120 102 $ 8 25,000 Sake 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 $117 per speaker from another manufacturer Sako Company evaluates division managers on the basis of divisional profits. Requlred: 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 (fany) 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 e 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 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? 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 acceptablettransfer price for speakers acquired from the Audio Division c What is the range of acceptable transfer prices fanylibetween the two divisions? If left free to negotiate without intelierENCE. 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 1B Req 1C Req 1D -Reg 2A and 2B Req 20 Req 2D Reg 3A and 3B Reg 30 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 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? res NO 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 $ 120 5 102 5 25,00 K 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 $117 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 peryear 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 Division2 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? ces 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 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? 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 2 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 1B Reg 10 Requb Req 2A and 2B Req 20 Reg 20 Red 3A and 38 Rec 3C Reg 3D From the standpoint of the entire company, should the transfer take place? Assume the Audio Division is selling 25,000 speakers per year to outside customers. Transfer should take place Transfer should not take place.