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 :5 128 Variable costs per unit $ 110 Fixed costs per unit (based on capacity) $ 8 Capacity in units 25,000 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 $125 per speaker from another manufacturer. Sako Company evaluates division managers on the basis ofdivisional prots. 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 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 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? 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 i: and Req 1c Req 1D Req is and Req 2c Req 20 Res :3 and Req 3c Req 3.3. 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? a. Lowest acceptable transfer price b. Highest acceptable transfer price Show less Complete this question by entering your answers in the tabs below. Req 1A and 2A and Red 3A and 2B Req 2C Req 2D 33 Reg 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 Audit Division to the Hi-Fi Division? Assume the Audio Division is now selling only 20,000 speakers per year to outside customer Range of acceptable transfer prices Are the managers likely to agree on a transfer price? Req 1A and Req 2A and 1B Req 1C Req 1D 2B Req 2C Req 2D Req 3A and 3B Req 3C Req 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 Should the transfer take place?Req 1A and 13 Reg 1c Req 1D Re\" 2"\" and Req 2c Req 2D Re\" :3 and Req 3c Req 3o 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? a. Lowest acceptable transfer price b. Highest acceptable transfer price Show less Req 1A and 13 Reg 1c Reg 10 Re\" 2A and 2B Reg 20 Req :3 and Req 3c Reg 30 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 Audit Division to the Hi-Fi Division? Assume the Audio Division is selling 22,500 speakers per year to outside customers. Range of acceptable transfer prices Are the managers likely to agree on a transfer price? Req 1A and 1B Req 1C Req 1D Req 2A and Req 2C Req 2D Req 3A and 2B 3B Req 3C Req 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. Should the transfer take place?Req i: and Req 1c Req 10 Re\" is and Real 2C Res 2'3 Req 3A and Req 3C 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? a. Lowest acceptable transfer price b. Highest acceptable transfer price Show less 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 Audic Division to the Hi-Fi Division? Range of acceptable transfer prices Are the managers likely to agree on a transfer price?Req 1A and Req 2A and 1B Req 1C Req 1D Req 2C Req 2D Req 3A and 2B 3B Req 3C Req 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. Should the transfer take place