Complete #2-3 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 AudioDivision?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-FiDivision?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 AudioDivision?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-FiDivision?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 3A andReq 2A and2BReg 1A andReq 10Req 2DReq 3CReq 3DReq 1DReq 203B1B< Prev3 of 13Next >...11:03 AMrch4/16/2021 Sako Company's Audio Division produces a speaker that is used by manufacturers of various audio products. Sales and cost dataon the speaker follow:Selling price per unit on the intermediate marketVariable costs per unitFixed costs per unit (based on capacity)Capacity in units132$2$25,000114Sako Company has a Hi-Fi Division that could use this speaker in one of its products. The Hi-Fi Division will need 5,000 speakersper year. It has received a quote of $129 per speaker from another manufacturer. Sako Company evaluates division managers onthe 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 AudioDivision?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-FDivision?d. From the standpoint of the entire company, should the transfer take place?...< Prev3 of 13Next >

Part 2 and 3 is provided below, Please give thumbs up for my efforts.

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 $ 2$ $ 25,000 132 114 8 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 received a quote of $129 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 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? d. From the standpoint of the entire company, should the transfer take place?

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q