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The Rolling Parts Division of Finch Company plans to set up a facility with the capacity to make 10,200 units annually of a webcam for
The Rolling Parts Division of Finch Company plans to set up a facility with the capacity to make 10,200 units annually of a webcam for laptop computers. The avoidable cost of making the webcam is as follows. Required a-1. Assume that Finch's Langford Division is currently purchasing 5,600 of the same type of webcam each year from an outside supplier at a market price of $46.50. What would be the financial consequence to Finch if the Rolling Parts Division makes the webcam and sells it to the Langford Division? a-2. Does a reasonable range of transfer prices exist? b. Suppose that the Langford Division increases production so that it could use 10,200 webcams made by the Rolling Parts Division. How would the change in volume affect the range of transfer prices that would financially benefit both divisions? Complete this question by entering your answers in the tabs below. Assume that Finch's Langford Division is currently purchasing 5,600 of the same type of webcam each year from an outside supplier at a market price of $46,50. What would be the financial consequence to Finch if the Rolling Parts Division makes the webcam and sells it to the Langford Division? a-2, Does a reasonable range of transfer prices exist? b. Suppose that the Langford Division increases production so that it could use 10,200 webcams made by the Rolling Parts Division. How would the change in volume affect the range of transfer prices that would financially benefit both divisions? Complete this question by entering your answers in the tabs below. Does a reasonable range of transfer prices exist? b. Suppose that the Langford Division increases production so that it could use 10,200 webcams made by the Rolling Parts Division. How would the change in volume affect the range of transfer prices that would financlally benefit both divisions? Complete this question by entering your answers in the tabs below. Suppose that the Langford Division increases production so that it could use 10,200 webcams made by the Rolling Parts Division. What is the range of transfer prices that would financially benefit both divisions? (Round your answers to 2 decimal places.) Trantifer price range which financially beneft divisions from minimum to miximum: and
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