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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 Pixed costs per unit (based on capacity) Capacity in units 64,000 Sako Company has a Hi-Fi Division that could use this speaker in one of its products. The Hi-Fi Division will need 9,000 speakers per year. It has received a quote of $37 per speaker from another manufacturer. Sako Company evaluates division managers on the basis of divisional profits. Required: 1. Assume the Audio Division is now selling only 55.000 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? 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? if left free to negotiate without interference, would you expect the division managers to voluntarily agree to the transfer of 9,000 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 all of the speakers it can produce 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? if left free to negotiate without interference, would you expect the division managers to voluntarily agree to the transfer of 9.000 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. 11 of 14 Next > YUUEEL VE E PUU UJU d. From the standpoint of the entire company, should the transfer take place? 2. Assume the Audio Division is selling all of the speakers it can produce 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 Audic Division? c. What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without interferenc you expect the division managers to voluntarily agree to the transfer of 9,000 speakers from the Audio Division to the Hi-Fi Di d. From the standpoint of the entire company, should the transfer take place? Compitte this question by entering your answers in the tabs below. Req 1A Req 18 Req 1C Req 10 Req 2A Req 2B Req 2C Req 2D From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Division? Assume the Audio Division is now selling only 55,000 speakers per year to outside customers. Lowest acceptable transfer price K Reg 1A Reg 10 > MacBook De c. What is the range of acceptable trarisiei picUS (u dry) Letween I WU UVIJIULIU. ILILIUU IU HUYUUU M UUM you expect the division managers to voluntarily agree to the transfer of 9,000 speakers from the Audio Division to the Hi-Fi Div d. From the standpoint of the entire company, should the transfer take place? 2. Assume the Audio Division is selling all of the speakers it can produce 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 you expect the division managers to voluntarily agree to the transfer of 9,000 speakers from the Audio Division to the Hi-Fi Div 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 1A Reg 1B Req 1C Req 1D Req 2A Reg 2B Req 2C Req 2D From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Audio Division? Assume the Audio Division is now selling only 55,000 speakers per year to outside customers. Highest acceptable transfer price Reg 1A Req 10 > b. From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired Pom 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 9,000 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 Reg 1B Req 1C Req 1D Req 2A Reg 2B Req 2C Req 2D 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 9,000 speakers from the Audio Division to the Hi-Fi Division? Assume the Audio Division is now selling only 55,000 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 s Transfer prices Are the managers likely to agree on a transfer price? Reg 18 Reg 10 > d. From the standpunt Ulule erie Lumipally, IUUIU WUNDU UN PICUT 2. Assume the Audio Division is selling all of the speakers it can produce 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 Divisi b. From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Aud Division? c. What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without interferer you expect the division managers to voluntarily agree to the transfer of 9,000 speakers from the Audio Division to the Hi-Fi d. From the standpoint of the entire company, shduld the transfer take place? Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 10 Reg 1D Reg 2A Req 2B Req 2c Req 2D From the standpoint of the entire company, should the transfer take place? Assume the Audio Division is now selling only 55,000 speakers per year to outside customers. Transfer should take place. Transfer should not take place. 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 9,000 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 all of the speakers it can produce 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 9.000 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 Reg 1B Reg 10 Req 1D Reg 2A Req 2B Req 2c Reg 2D From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Division? Assume the Audio Division is selling all of the speakers it can produce to outside customers. Lowest acceptable transfer price Req 10 Req 28 > Homework ... 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 9,000 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 all of the speakers it can produce 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 9,000 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 1A Reg 1B Req 1C Reg 10 Req 2A Red 28 Req 2C Req 2D From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Audio Division? Assume the Audio Division is selling all of the speakers it can produce to outside customers. Highest acceptable transfer price UPVISUUS 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 9,000 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 Reg 1B Req 1C Req 1D Reg 2A Req 2B Req 2c Req 2D 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 9,000 speakers from the Audio Division to the Hi-Fi Division? Assume the Audio Division is selling all of the speakers it can produce 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: 12 Transfer price Are the managers likely to agree on a transfer price? Yes ONO Req 28 Reg 2D > Division? c. What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without interferen! you expect the division managers to voluntarily agree to the transfer of 9,000 speakers from the Audio Division to the HI-FI DI d. From the standpoint of the entire company, should the transfer take place? 2. Assume the Audio Division is selling all of the speakers it can produce to outside customers. point of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Divisio b. From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Audi Division? c. What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without interferen you expect the division managers to voluntarily agree to the transfer of 9,000 speakers from the Audio Division to the Hi-Fi D 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 1A Req 1B Req 1C Req 10 Req 2A Req 2B Req 2c Reg 2D From the standpoint of the entire company, should the transfer take place? Assume the Audio Division is selling all of the speakers it can produce to outside customers. Transfer should take place. Transfer should not take place.

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