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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: Sako

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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: Sako 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 $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 speokers 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 Hi.Fi Division, what is the highest acceptabie transfer price for speakers acquired from the Audio Division? c. What is the range of acceptable transfer prices (ff any) between the two divisions? If lef free to negotiate without interference, would you expect the division managers to voluntanily ogree to the transfer of 5.000 speakers from the Audio Divislon 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. 2. Arsume the Audio Division is seling 22,500 speakers of the Audio Division, whot is the lowest acceptable transfer price for speakers sold to the HiFFi Division? b. From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers ocquired from the Audio Division? c. What is the range of acceptable transfer prices (f any) between the two divisions? If lef free to negotiate without interference, would you expect the division managers to voluntorily 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 Hifi Division, what is the highest acceptable transfer price for speakers acquired from the Audio Division? c. What is the range of acceptabie transfer prices (f any) between the two divisions? if ief free to negotiate without interference. would you expect the alvision managers to voluntarlly 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? 1. Assume the Audio Division sells only 20,000 speakers per year to outside customers. Required: 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 HIFI Division, what is the highest acceptable transfer price for speakers acquired from the Audio c. What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without interference, would Division? 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-FI Division? b. From the standpoint of the Hl-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Audio c. What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without interference, would Division? 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 c. What is the range of acceptable transfer prices (f any) between the two divisions? If left free to negotiate without interference, would Division? you expect the dlvision 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. Assume the Audio Division sells only 20,000 speokers per year to outside customers. 2. 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 Hi-F Division, what is the highest acceptable transfer price for speakers acquired from the Audio Division

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