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Sako Company's Audio Division produces a speaker that is used by manufacturers of varlous audio products, Sales and cost data on the speaker follow: Sako
Sako Company's Audio Division produces a speaker that is used by manufacturers of varlous 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 lis products, The H. H-F Divislon will heed 5,000 speakers per year. It has recelved a quote of $61 per speaker from another manufacturer. Sako Company evaluates divislon maniagers on the basis of divisional profits. Required: 1. Assume the Audio Divislon sells only 20,000 speakers per year to outside customers: a. From the standpoint of the Audio Division, what is the lowest acceptable tranisfer price for speakers sold to thie thi-F Divistori? b. From the standpoint of the Hi-Fi Division, what is the highest acceplable transfer price for speakers acquited from the Audio Division? c. What is the range of acceptable transfer prices (if any) between the two divislons? If left free to niegotlate without interference, would you expect the division managers to voluntarily agree to the transfer of 5,000 speakers from the Audio Divislon to the Hili-F Divistori? 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 Hili-f Divislon? 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 divislons? If left free to negotlate 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 Divislon? 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 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 negotlate 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? 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? 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? 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 speakers per year to outside customers. a. From the standpoint of the Audio Division, what is the lowest accontablostrnces. Complete this question by entering your answers in the tabs below. Assume the Audiopivision 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? Complete this question by entering your answers in the tabs below. What is the range of acceptable transfer prices (If any) between the two divisionis? If left free to negotlate withiout Interference, would you expect the division managers to voluntarlly agree to the transfer of 5,000 speakers from the Nuditio Division to the HI-FI Division? Assume the Audlo Divislon is now selling only 20,000 speakers per yeal to outside custoriers. 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. Show less A 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 - i Division? b. From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Audio Division? What is the range of acceptable transfer prices (If any) between the two divisions? If left free to negotlate 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. 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. Complete this question by entering your answers in the tabs below. 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? 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 entlie company, should the transfer take place? Assume the Audio Division is selling 25,000 speakers per year to outside customers
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