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4. International Paper Corporation manufactures 10,000 rolls of paper each period. The paper is used as an input for producing several other products that
4. International Paper Corporation manufactures 10,000 rolls of paper each period. The paper is used as an input for producing several other products that International Paper manufactures. The full manufacturing costs for a batch of 50 rolls of paper are as follows: Direct materials Direct labor Variable manufacturing overhead Average fixed manufacturing overhead Total $ 135 100 100 188 $523 An outside supplier has offered to sell International Paper the 10,000 rolls of paper necessary to meet production needs this period for a lump-sum of $72,500. What should International Paper Corporation do if it wants to maximize its profit for the period?
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