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 $ 41 $ 17 $ 8 66,000 Sako Company has a Hi-Fi Division that could use this speaker in one of its products. The Hi-Fi Division will need 12,000 speakers per year. It has received a quote of $31 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 54,000 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? if left free to negotiate without interference, would you expect the division managers to voluntarily agree to the transfer of 12,000 speakers from the Audio Division to the HFI 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 12,000 speakers from the Audio Division to the Hi-Fi Division? d. From the standpoint of the entire company, should the transfer take place? ces Complete this question by entering your answers in the tabs below. Reg 1A Reg 13 Reg 1C Reg 10 Reg 2 Reg 20 Reg 2 Reg 2D From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the vision? What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without interfe ou expect the division managers to voluntarily agree to the transfer of 12,000 speakers from the Audio Division to the Hi- 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. From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Divis . From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Au Division? . What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without interfere you expect the division managers to voluntarily agree to the transfer of 12,000 speakers from the Audio Division to the Hi-Fi 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 28 Reg 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 54,000 speakers per year to outside customers. Lowest acceptable transfer price Req 18 > Speakers from the Audio Division to the 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. From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Di From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the A vision? What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without interfer ou expect the division managers to voluntarily agree to the transfer of 12,000 speakers from the Audio Division to the Hi-F 1. 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 Req 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 54,000 speakers per year to outside customers. Highest acceptable transfer price 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 Divis b. From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Auc 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 12,000 speakers from the Audio Division to the Hi-Fi 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 Reg 10 Reg 1D Req 2A Req 2B Req 2c Req 2D What is the range 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 12,000 speakers from the Audio Division to the Hi-Fi Division? Assume the Audio Division is now selling only 54,000 speakers per year to outside customers. Identify the range of acceptable transigt 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 Are the managers likely to agree on a transfer price? Oros ONO - What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without inte ou expect the division managers to voluntarily agree to the transfer of 12,000 speakers from the Audio Division to the . 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 Di b. From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Division? c. What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without interfer you expect the division managers to voluntarily agree to the transfer of 12,000 speakers from the Audio Division to the Hi-F d. From the standpoint of the entire company, shoud the transfer take place? Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 1c Reg 1D Req 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 54,000 speakers per year to outside customers. Transfer should take place. Transfer should not take place. expect managers to voluntarily agree to the transfer of 12,000 speakers from the Audio Division to the 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. From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the ivision? What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without interf ou expect the division managers to voluntarily agree to the transfer of 12,000 speakers from the Audio Division to the H. 4. 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 Req 28 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 selling all of the speakers it can produce to outside customers. Lowest acceptable transfer price expec untarily agree speakers from the Audio Division to the 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. From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi DF From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the vision? What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without interfe ou expect the division managers to voluntarily agree to the transfer of 12,000 speakers from the Audio Division to the Hi- - 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 1D Req 2A Reg 28 Req 2C Reg 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 ivision? What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without interf ou expect the division managers to voluntarily agree to the transfer of 12,000 speakers from the Audio Division to the HE 1. 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 10 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 12,000 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. 2 Transfer price Are the managers likely to agree on a transfer price? 10Yes ONO What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without inter u expect the division managers to voluntarily agree to the transfer of 12,000 speakers from the Audio Division to the 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. From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Di From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the A Division? - What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without interfer wou expect the division managers to voluntarily agree to the transfer of 12,000 speakers from the Audio Division to the Hi-F 3. 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 Req 1B Req 10 Req 1D Req 2A Reg 28 Reg 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