Sako Company's Audio Division produces a speaker that is used by manufacturers of various audio products. Sales and cost dota on the speaker follow: Selling price per unit on the internediate market Variable costs per unit Fixed conta per unit (based on capacity) Capacity in unte $ 92 $ 74 $ 8 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 $89 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 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. Who 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 HFI Division? Hem then of the antaman the translia namn 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, woul 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 I 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? View previous attempt CH Reg 1A and 18 Reg 1c Reg 10 Reg 2A and 2B Reg 2C Reg 20 Reg 3A and 3B Reg 3C Reg 30 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 fighest acceptable transfer price for speakers acquired from the Audio Division? Show less Lowest acceptable transfer price b. Highest acceptable transfer price Roq 10 Reg 1A and 1B Reg 10 Reg 10 Req 2A and 28 Req 2c Req 20 Reg 3A and 3B Reg 30 What is the range of acceptable transfer prices (if any) between the two divisions? If left free to interference, would you expect the division managers to voluntarily agree to the transfer of 5,00 Division to the Hi-Fi Division? Assume the Audio Division is now selling only 20,000 speakers pe bk It 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 price ht s nces Are the managers likely to agree on a transfer price? Yes No Reg 1A and 1B Reg 1C Req 10 Reg 2A and 2B Reg 20 Req 2D Reg 3A and 38 Reg 3C 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 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 b. Highest acceptable transfer price Req 10 Req 2c > Reg 1A and 13 Reg 10 Req 10 Reg 2A and 28 Req 2c Req 2D Req 3A and 38 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 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 hoes Are the managers likely to agree on a transfer price? Yes ONO Req IA and 1B Reg 10 Reg 10 Reg 2A and 2B Reg 2C Req 2D Req 3A and 38 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 a Lowest acceptable transfer price Highest acceptable transfer price b Req 2D Req 3C > View previous attempt Complete this question by entering your answers in the tabs below. Jeg 1A and Req 1C Req 2A and 2B Req 1D Reg 20 Req 2D Reg 3A and 3B Reg 30 1B 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. entify 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 Rre the managers likely to agree on a transfer price? Yes No