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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 intermediate market Variable costs per unit Fixed costs per unit (based on capacity) Capacity in units VA A $ B4 $ 66 $ 8 25,000 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 $81 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 HL-F 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 H-F 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? From the standart of the Hinn what is the intentable incarca for the cared from the Arti 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 of any between the two divisions? ifteft 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 isseling 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 HF Division b. From the standpoint of the HiFi 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 it le 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? 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 From the standpoint of the Audio Division what is the lowest acceptable transfer price for speakers sold to the HAF Division? b. From the standpoint of the HF Division what is the highest acceptable transfer price for speakers acquired from the Audio Dision What is the range of acceptable transfer prices of any between the two divisions? Ifte free to negotiate without interference would you expect the division managers to voluntarily agree to the transfer of 5000 speakers from the Audio Division to the HIF Division d. From the standpoint of the entire company should the transfer take place? U 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-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? Complete this question by entering your answers in the tabs below. Reg 1A and 1B Reg 10 Reg 10 Red 2A and 28 Reg 20 Red 2D Reg 3A and 38 Reg 3 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 b. 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 bHighest acceptable transfer price Complete this question by entering your answers in the tabs below. Reg 1A and 1B Reg 10 Reg 10 Reg 2A and 2B Reg 20 Reg 2D Req 3A and 30 Req 30 Reg 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 now selling only 20,000 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 s Are the managers likely to agree on a transfer price? You ONO Complete this question by entering your answers in the tabs below. Req 1A and 1B Reg 10 Reg 10 Reg 2A and 2B Reg 20 Reg 20 Reg 3A and 3B Reg 30 Reg 3D 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 b. From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Audio Division? Division? Show less B Lowest acceptable transfer price Highest acceptable transfer price b Complete this question by entering your answers in the tabs below. Reg 1A and 18 Reg 16 Reg 10 Reg 2A and 2B Reg 20 Reg 2D Reg 3A and 3B Reg 3 Reg 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 22,500 speakers per year to outside customers. identity 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? Oyen TO NO Complete this question by entering your answers in the tabs below. 29 1A and 18 Reg 1C Req 2A and Reg ID 28 Reg 20 Reg 20 Reg 3A and 38 Reg 30 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 should not take place Complete this question by entering your answers in the tabs below. Reg 1A and 1B Reg 10 Reg 2A and Req 1D 2B Reg 2C Reg 2D Reg 3A and 3B Reg 3C Reg 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 Lowest acceptable transfer price Highest acceptable transfer price b Reg 20 Complete this question by entering your answers in the tabs below. Reg 1A and IB Reg 10 Req ID Reg 2A and 2B Req 20 Reg 2D Reg 3A and 3B Req 3C Reg 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 S Are the managers likely to agree on a transfer price? Ores ONO vision? What is the range of acceptable transfer prices (if any) between the two divisions? if left free to negotiate without in bu expect the division managers to voluntarily agree to the transfer of 5,000 speakers from the Audio Division to the From the standpoint of the entire company, should the transfer take place? Complete this question by entering your answers in the tabs below. Req 1A and 1B Req 10 Reg 10 Reg 2A and 2B Reg 2C Reg 20 Reg 3A and 3B Reg 30 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

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