45 Hrubec Products, Incorporated, operates a Pulp Division that manufactures wood pulp for ung goods. Revenue and costs associated with a ton of pulp follow Selling price Expenses Variable 560 Fixed (based on a capacity of 30,000 tons per year) 18 78 do Net operating income $10 Hrubec Products has just acquired a small company that manufactures paper cartons Hrubec plans to treat its newly acquired Canton Division as a profit center. The manager of the Carton Division is currently purchasing 5.900 tons of pulp per year from a supplier at a cost of $81 per ton. Hrubec's president is anxious for the Carton Division to begin purchasing its pulp from the Pulp Division if the managers of the two divisions can negotiate an acceptable transfer price Required: For (1) and (2) below, assume the Pulp Division can sell all of its pulp to outside customers for $88 per ton 1 What is the Pulp Division's lowest acceptable transfer price? What is the Carton Division's highest acceptable transfer price? What is the range of acceptable transfer prices of any) between the two divisions? Are the managers of the Canton and Pulp Divisions likely to voluntarily agree to a transfer price for 5.900 tons of pulp next year? 2:If the Pulp Division meets the price that the Carton Division is currently paying to its suppler and sels 5,000 tons of pulp to the Carton Division each year, what will be the effect on the profits of the Pulp Division, the Carton Division, and the company as a whole?