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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. Soko

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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. Soko Company has a.HI-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 recelved a quote of $133 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. What is the range of acceptable transfer prices (if any) between the two divisions? If lef 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.F Division? b. From the standpoint of the Hl-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 negotate without interference, would you expect the division managers to voluntarly agree to the transter 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 git any) between the two divisions? If ilef 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 Hicfi Division? d. From the standpoint of the entire company, should the transter toke place? Complete this question by entering your answers in the tabs below. Assume the Audio Division selis only 20,000 speakers per year to outside curtoeners a. From the standpoint of the Audio Division, what is the lowest acceptable transier price for speakers sold to the Hi.Fi Division? b. From the st Division? c. What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without interferen would you expect the division managers to voluntarily agree to the transfer of 5,000 speakers from the Audio Division to the 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. 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 now selling only 20,000 speakers per year to outside customers. 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. 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. 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? ivision? From the standpoint of the entire company, should the transfer take place? Complete this question by entering your answers in the tabs below. 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 Hl-Fi Division? Assume the Audio Division is selling 22,500 speakers per year to outside customers. Complete this question by entering your answers in the tabs below. 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. 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 til-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? Complete this question by entering your answers in the tabs below. 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? Complete this question by entering your answers in the tabs below. 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

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