The Rolling Parts Division of Munoz 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. Costs Variable cost Fixed cost Total $275,400 142,800 Cost per Unit $27.00 14.00 (at capacity) Required a-1. Assume that Munoz's Langford Division is currently purchasing 5,700 of the same type of webcam each year from an outside supplier at a market price of $47.05. What would be the financial consequence to Munoz if the Rolling Parts Division makes the webcam and sells it to the Langford Division? a-2. Does a reasonable range of transfer price 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. Reg A1 Reg A2 Reg B Assume that Munoz's Langford Division is currently purchasing 5,700 of the same type of webcam each year from an outside supplier at a market price of $47.05. What would be the financial consequence to Munoz if the Rolling Parts Division makes the webcam and sells it to the Langford Division? Munoz would RAAD The Rolling Parts Division of Munoz 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. Conta Total Cost per Unit Variable cost $275,400 $27.00 Fixed cost 142,800 14.00(at capacity) Required a-1. Assume that Munoz's Langford Division is currently purchasing 5,700 of the same type of webcam each year from an outside supplier at a market price of $47.05. What would be the financial consequence to Munoz If the Rolling Parts Division makes the webcam and sells it to the Langford Division? a-2. Does a reasonable range of transfer price 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. Reg A1 Reg AB Reg B Does a reasonable range of transfer price exist? Does a reasonale range of transfer price exost? The Rolling Parts Division of Munoz 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. Costs Total Cost per Unit Variable cost $275,400 $27.00 Fixed cost 142,800 14.00(at capacity) Required a-1. Assume that Munoz's Langford Division is currently purchasing 5,700 of the same type of webcam each year from an outside supplier at a market price of $47.05. What would be the financial consequence to Munoz if the Rolling Parts Division makes the webcam and sells it to the Langford Division? a-2. Does a reasonable range of transfer price 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. Reg A1 Reg A2 Reb 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? (Round your answers to 2 decimal places.) Transfer price range which financially benefit divisions from minimum to maximum and
