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In each of the following cases, the Speaker Division can sell all of its production of audio speakers externally or some internally to the Sound System Division and the remainder to outside customers. The Speaker Division s production capacity is 400,000 units annually. The data related to each independent case are as follows: a. For each case, determine the upper and lower limits for a transfer price for speakers. b. For each case, determine a transfer price for the Speaker Division that will provide a $12 contribution margin per unit. c. Using the information developed for (b), determine a dual transfer price for Case 1 assuming that Sound System will acquire the speakers from the Speaker Division at $12 below Sound System’s purchase price from outsidesuppliers.
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