company audio division produces a speaker that is used by manufactureers of various audio products Sales and cost data on the speaker follow Selling price per unit 120 varioable cost per unit 102 Fixed costs per unit $8 Capacity in units 25,000 Assume the dvision is selling 22500 speakers per year tocusotmers a) what is the lowest acceptable transfer price b) what is highest accepatbale transfer price What is the range of acceptable transfer prices between 2 division If left free to negotiate without interference would you expect divison managers to voluntaily agree to transfer 5000 speakers fromthe Audio divison to Hi Fi? why or why not From the standpoint of
a company audio division produces a speaker that is used by manufactureers of various audio products Sales and cost data on the speaker follow
Selling price per unit 120
varioable cost per unit 102
Fixed costs per unit $8
Capacity in units 25,000
Assume the dvision is selling 22500 speakers per year tocusotmers
a) what is the lowest acceptable transfer price
b) what is highest accepatbale transfer price
What is the range of acceptable transfer prices between 2 division If left free to negotiate without interference would you expect divison managers to voluntaily agree to transfer 5000 speakers fromthe Audio divison to Hi Fi? why or why not
From the standpoint of the entire company should the transfer take place why or why not?
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
