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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: Selling

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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: Selling price per unit on the interned late market Variable poste per unit Fixed costo per unit (based on capacity Capacity in unita $ 124 $ 5 B 25,000 Sako Company has a H-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 $121 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 yar 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 H-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 of 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 H-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 of 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. o. 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 Dlvikinn? 3. Assume the Audio 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? 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? From the standpoint of the entire company should the transfer take place? Complete this question by entering your answers in the tabs below. Regic Red 1A and 16 Reg 2A and 28 Reg 10 Reg 2C Reg 2D Beg 30 Reg 3A and 3B Reg 3D 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 bi From the standpoint of the HI-F Division, what is the highest acceptable transfer price for speakers acquired from the Audio Division? Lowest acceptable transfer price D. Highest acceptable transfer price SA and Reg 10 > Division? What is the range of acceptable transfer prices (if any between the you expect the division managers to voluntarily agree to the transfer of 5,000 speakers from the Audio DIVISION 10 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 3D Red 3A and 30 Reg 20 Reg 3 Meet and Rep 20 Reg 2A and 28 Reap Res 10 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? Astume the Audio Division is now selling only 20,000 speakers per year to outside customers Identify the range of comptable transfer prices of any There is not a range of acceptable transfer prices There is a range of comptable transfer prices as shown below. 5 Transfer price Ar the managers likely to agree transfer price? OY From the b. From the standpoint of the HI-FI Division, what is the lignes Division? c. What is the range of acceptable transfer prices of 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. Reg LA and 10 Reg 20 Reg 3A and 38 Red 2A and 21 Reg 2C Beg 30 Reg 3D Regib Reg 1C 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 C Reg 10 Reg 2A and 28 > Division? What is the range of acceptable transfer prices than d. From the standpoint of the entire company, should the transfer take place? of speakers Complete this question by entering your answers in the tabs below. Reg 3C Reg 3D Reg 3A and 38 Reg 20 Reg 2A and 20 Reg 2c Reg 1A and 18 Req ID Reg 1 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 Loweat acceptable transfer price b. Highest acceptable transfer price DET Division c What is the range of acceptable transfer prices (if any) between the two divisions? if left free to negotiate without 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 30 Reg 3A and 38 Reg 2c Reg 2A and 2B Reg 3C Reg 2D Reg LA and 18 Req 1D Req 1C 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-F 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 s Are the managers likely to agree on a transfer price? Yes O No b. From the standpoint of the Division? c. What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate 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 3A and 38 Reg 3D Reg 3 Reg 2D Reg 2A and 20 RG IA and 16 Reg 2 Regic Reg 10 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 you expect the division may 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 3D Reg 30 Reg 2D Reg 3A and 3B Reg 2c Reg LA and 10 Reg 2A and 28 Req 10 Reg 10 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 Lowest acceptable transfer price Highest acceptable transfer price D Prey 1 of 1 Next Complete this question by entering your answers in the tabs below. Reg lic Reg 1A and Reg JA and Reg 2A and Regic Reg 10 10 Reg 30 Reg 20 20 Reg 20 What is the range of acceptable transfer prices (if any) between the two divisions? Ir 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-F Division? Assume the Audio Division is selling 25,000 speakers per year to outside customers. Idently the range of cooptable transfer prions (if any) There is not a range of soceptable transfer prices There is a range of acceptable transfer prices as shown below s Transfer price Are the managers aly to agree on a transfer price? OY NO Req3A and 3B Req30 > Prey 1 of 1 !!! Next you From the standpoint of the entire company, Complete this question by entering your answers in the tabs below. Reg 30 Rea SA and 30 Red 30 R 2A and Reg C Res 20 et and 10 Regic Reo D 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 Thanter should not be place

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