Exercise 11a-1 transfer pricing basics [lo11-5] 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. required: 1. assume that the audio division is now selling 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?

Areal estate agent is considering changing her cell phone plan. there are three plans to choose from, all of which involve a monthly service charge of $20. plan a has a cost of $.42 a minute for daytime calls and $.17 a minute for evening calls. plan b has a charge of $.52 a minute for daytime calls and $.15 a minute for evening calls. plan c has a flat rate of $80 with 275 minutes of calls allowed per month and a charge of $.38 per minute beyond that, day or evening. a. determine the total charge under each plan for this case: 150 minutes of day calls and 70 minutes of evening calls in a month. (do not round intermediate calculations. round your answer to 2 decimal places. omit the "$" sign in your response.)c. if the agent will use the service for daytime calls, over what range of call minutes will each plan be optimal? (round each answer to the nearest whole number. include the indifference point itself in each answer.)d. suppose that the agent expects both daytime and evening calls. at what point (i. e., percentage of total call minutes used for daytime calls) would she be indifferent between plans a and b?