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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 Seling

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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 Seling price per unnt on the intermediate market Variable costs per un Fixed costs per una based on capacity) Capadly in units 5 $ $ 42 20 6 56,000 Sako Company has a Filion that could use this speaker in one of its products. The Division will need 10.000 per per year. It has received a quota of 36 per poter from the manufacturer Sako Company values division managers on the basis of divsional profta Required: Asume that the Audio Division is now selling only 46,000 speakers per you to outside customers From the standpoint of the Audio Division, what is the lowest comptable transfer price for uponkoru vou to the Dino D. From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Audio Division? c. of tree to negotiate without interference, would you expect the division manager to voluntarily agree to the tranofer of 10.000 speakers from the Audio Division to the Hey Dion? O No Yes From the standpoint of the entire company, should the transfer take place? Transfor should not take place Trader should take place 2. Assume that the Audio Division is being all of the speakers it can produce to outside customers a From the standpoint of the Audio Dion, what is the lowest acceptable transfer price for speakers told to the Division b. From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Audio Division? Transfer price c. It of free to negotiate without interference, would you expect the division manager to voluntariy agron to the transfer of 10.000 speakers from the Audio Dwon to the noison? O No Yes . From te standpoint of the entire company, should the transfer take place? Transfer should not take place Transfer should take place

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