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1 . Assuming Kenton, the Northern Division Manager, in Birch Paper Case, is as self - interested as any other division manager. Why doesn't he
Assuming Kenton, the Northern Division Manager, in Birch Paper Case, is as selfinterested as any other division manager. Why doesn't he just buy from West at $ and move on Why go to the Commercial VP and exert effort, time, and energy for essentially the same financial outcome for his division as if he bought from West Paper?
Assuming the Commercial Vice President has decided to require internal sourcing. Why not set the TP at $ instead of $ The effect on Birch Paper's cash flows is exactly the same.
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