SOLVE 2A AND 2B PLEASE DO IT FAST DIVISION:c. What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without interference, wouldyou 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.Req 1A and1BReq 1CReq 1Dwww.Red 2A and2Ba. Lowest acceptable transfer priceb. Highest acceptable transfer priceReq 2C<Req 2DReq 3A and3BAssume 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-FiDivision?Req 1Db. From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from theAudio Division?Req 30Req 3DReq 2C >Show less Sako Company's Audio Division produces a speaker that is used by manufacturers of various audio products. Sales and cost data onthe speaker follow:Selling price per unit on the intermediate marketVariable costs per unitFixed costs per unit (based on capacity)Capacity in units$128$ 110$825,000Sako 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 peryear. It has received a quote of $125 per speaker from another manufacturer. Sako Company evaluates division managers on the basisof 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, wouldyou 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 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, wouldyou 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 AudioDivision?c. What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without interference, wouldyou 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?Prev1 of 2wwwwwwENext >

Answered: SOLVE 2A AND 2B PLEASE DO IT FAST

Business

Accounting

SOLVE 2A AND 2B PLEASE DO IT FAST

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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:Selling price per unit on the intermediate market $ 80Variable costs per unit $ 62Fixed costs per unit (based on capacity) $ 8Capacity in units 25,000 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 $77 per speaker from another manufacturer. Sako Company evaluates division managers on the basis of divisional profits.Required: 1. 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…
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 $ 136 Variable costs per unit $ 118 Fixed costs per unit (based on capacity) $ 8 Capacity in units 25,000 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 $133 per speaker from another manufacturer. Sako Company evaluates division managers on the basis of divisional profits. Required: Assume the Audio Division sells only 20,000 speakers per year to outside customers. From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Division? 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…
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 $ 60 Variable costs per unit $ 42 Fixed costs per unit (based on capacity) $ 8 Capacity in units 25,000 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 $57 per speaker from another manufacturer. Sako Company evaluates division managers on the basis of divisional profits. a. 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…
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Bostonian Inc. has a number of divisions, including the Delta Division and the Listen Now Division. The Listen Now Division owns and operates a line of MP3 players. Each year, the Listen Now Division purchases component AZ in order to manufacture the MP3 players. Currently, it purchases this component from an outside supplier for $6.50 per component. The manager of the Delta Division has approached the manager of the Listen Now Division about selling component AZ to the Listen Now Division. The full product cost of component AZ is $3.10. The Delta Division can sell all of the component AZs it makes to outside companies for $6.50. The Listen Now Division needs 18,000 component AZs per year; the Delta Division can make up to 60,000 components per year. Required: A. Which division sets the maximum transfer price? Which division sets the minimum transfer price? Maximum Minimum B. Suppose the company policy is that all transfer take place at full cost. What is the transfer…
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