6 Hrubec Products, Inc, operates a Pulp Division that manufactures wood pulp for use in the production of various paper goods. Revenue and costs associated with a ton of puto follow 524 $15 30 Selling price pen! Variable Ted based on capacity of 96,000 ton per year) Het operating in Hrubec Products has just acquired a small company that manufactures paper cartons. Hrubec plans to treat its newly acquired Carfon Division as a profit center. The manager of the Carton Division is currently purchasing 29.000 tons of pulp per year from a supplier at a cost of $2160 per ton Hrubec's president is anodious 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 tell all of its pulp to outside customers for $24 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 transfor prices (if any between the two disors? Are the managers of the Carton and Pulp Divisions likely to Voluntarily agree to a transfer price for 29.000 tons of pulp next year? 2. If the Pulp Division meets the price that the Carton Division is currently paying to its supplier and is 29,000 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? For (3)-(6) below, assume that the Pulp Division is currently selling only 57,000 tons of pulp each year to outside customers at the stated $24 price 3. What is the Puip Division 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 Carton and Pulp Divisions likely to voluntarily agree to transfer price for 29.000 tons of pup next year? Se the Carton Division's outside supplier drops its price to only $20 perton Should the Pulp Division meet this price