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

Managerial Accounting: The Cornerstone of Business Decision-Making
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Chapter11: Performance Evaluation And Decentralization
Section: Chapter Questions
Problem 22BEB: Calculating Transfer Price Teslum Inc. has a number of divisions, including the Machina Division, a...
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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?

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