CH HW 2 4 points Seve Hrubec Products, Incorporated, 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 pulp follow. Selling price 98 Expenses Variable 70 Fixed (based on a capacity of 50,000 tons per year) 18 Back Het operating incone $.10 Help Save & Exit Subm P References Hrubet Products has just acquired a small company that manufactures paper cartons. Hrubec plans to treat its newly acquired Carton Division as a profit center. The manager of the Carton Division is currently purchasing 6,400 tons of pulp per year from a supplier at a cost of $91 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 $98 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 (if any) between the two divisions? Are the managers of the Carton and Pulp Divisions likely to voluntarily agree to a transfer price for 6,400 tons of pulp next year? 2. If the Pulp Division meets the price that the Carton Division is currently paying to its supplier and sells 6,400 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 30,000 tons of pulp each year to outside customers at the stated $98 price. 3. 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 (if any) between the two divisions? Are the managers of the Carton and Pulp Divisions likely to MC Graw Hill up Activity.docx MacBook Air Check my work CHI H Saved Help 4 2 points eBook Print References voluntany agree to a transter price for 6,4UU tons of puip next year?" 4-a. Suppose the Carton Division's outside supplier drops its price to only $87 per ton. Should the Pulp Division meet this price? 4-b. If the Pulp Division does not meet the $87 price, what will be the effect on the profits of the company as a whole? 5. Refer to requirement 4. If the Pulp Division refuses to meet the $87 price, should the Carton Division be required to purchase from the Pulp Division at a higher price for the good of the company as a whole? 6. Refer to requirement 4. Assume that due to inflexible management policies, the Carton Division is required to purchase 6,400 tons of pulp each year from the Pulp Division at $98 per ton. What will be the effect on the profits of the company as a whole? Complete this question by entering your answers in the tabs below. Mc Graw Hill Activity docx A Req 1 Reg 2 Req 3 Req 4A Rec 48 Red 5 Req 6 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 (if any) between the two divisions? Are the managers of the Carton and Pulp Divisions likely to voluntarily agree to a transfer price for 6,400 tons of pulp next year? Range of acceptable transfer prices i Are the managers likely to voluntarily agree to a transfer price for 6,400 tons of pulp next year? $98 s Transfer price $88 No Reg 2 > MacBook Air Save & Exit Submit Check my work CHIHW Saved Help Save & Exit 4 2 points ellock Pr References voluntarity agree to a transter price for 6400 tons or puip next year 4-a. Suppose the Carton Division's outside supplier drops its price to only $87 per ton. Should the Pulp Division meet this price? 4-b. If the Pulp Division does not meet the $87 price, what will be the effect on the profits of the company as a whole? 5. Refer to requirement 4. If the Pulp Division refuses to meet the $87 price, should the Carton Division be required to purchase from the Pulp Division at a higher price for the good of the company as a whole? 6. Refer to requirement 4. Assume that due to inflexible management policies, the Carton Division is required to purchase 6,400 tons of pulp each year from the Pulp Division at $98 per ton. What will be the effect on the profits of the company as a whole? Complete this question by entering your answers in the tabs below. Mc Graw Hill up Activity....docx Req 1 Reb 2 Req 3 Req 4A Req 48 Reg 5 Req 6 If the Pulp Division meets the price that the Carton Division is currently paying to its supplier and sells 6,400 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? Note: Do not round intermediate calculations. a. Profits of the Pulp Division will decrease b. Profits of the Carton Division will c. Profts of the company as a whole wil remain unchanged decrease by S by S 64,000 by $ 0 64,000 MacBook Air Check my w Seve 2 4-b. If the Pulp Division does not meet the $87 price, what will be the effect on the profits of the company as a whole? 4 points Help Save & Exit Book Pri 5. Refer to requirement 4. If the Pulp Division refuses to meet the $87 price, should the Carton Division be required to purchase from the Pulp Division at a higher price for the good of the company as a whole? 6. Refer to requirement 4. Assume that due to inflexible management policies, the Carton Division is required to purchase 6,400 tons of pulp each year from the Pulp Division at $98 per ton. What will be the effect on the profits of the company as a whole? Complete this question by entering your answers in the tabs below. Rece Req 1 Mc Graw Hill up Activity....docx Req 2 Req 3 Req 4A Reg 48 Req 5 Req6 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 (if any) between the two divisions? Are the managers of the Carton and Pulp Divisions likely to voluntarily agree to a transfer price for 6,400 tons of pulp next year? Note: Round your answers to nearest whole dollar amount. Identify the lowest and highest acceptable transfer prices Lowest acceptable transfer price Highest acceptable transfer price Range of acceptable transfer prices Are the managers likely to voluntarily agree to a transfer price for 6,400 tons of pulp next year? Show less # 47 80 888 74 MacBook Air PA g= Dil 53 * Check my w CHI H Seved 2 4 points ellook Prin 4-b. If the Pulp Division does not meet the $87 price, what will be the effect on the profits of the company as a whole? 5. Refer to requirement 4. If the Pulp Division refuses to meet the $87 price, should the Carton Division be required to purchase from the Pulp Division at a higher price for the good of the company as a whole? 6. Refer to requirement 4. Assume that due to inflexible management policies, the Carton Division is required to purchase 6,400 tons of pulp each year from the Pulp Division at $98 per ton. What will be the effect on the profits of the company as a whole? Complete this question by entering your answers in the tabs below. References Req 1 Req 2 Req 3 Req 4A Req 48 Req 5 Req 6 Mc Graw Group Activity.docx Suppose the Carton Division's outside supplier drops its price to only $87 per ton. Should the Pulp Division meet this price? Should the Pulp Division meet this price? MacBook Air Help Sa 2 4 points eBlock Priet 4-b. If the Pulp Division does not meet the $87 price, what will be the effect on the profits of the company as a whole? 5. Refer to requirement 4. If the Pulp Division refuses to meet the $87 price, should the Carton Division be required to purchase from the Pulp Division at a higher price for the good of the company as a whole? 6. Refer to requirement 4. Assume that due to inflexible management policies, the Carton Division is required to purchase 6,400 tons 1 of pulp each year from the Pulp Division at $98 per ton. What will be the effect on the profits of the company as a whole? Complete this question by entering your answers in the tabs below. References Req 1 Req 2 Reg 3 Reg 4A RG 40 Req 5 Reg 61 Mc Graw Hill oup Activity.docx If the Pulp Division does not meet the $87 price, what will be the effect on the profits of the company as a whole? Proft of the company will by MicBook Alt Check my wor CHI HW 2 4 points Saved eBook Pint 4-b. If the Pulp Division does not meet the $87 price, what will be the effect on the profits of the company as a whole? 5. Refer to requirement 4. If the Pulp Division refuses to meet the $87 price, should the Carton Division be required to purchase from the Pulp Division at a higher price for the good of the company as a whole? 6. Refer to requirement 4. Assume that due to inflexible management policies, the Carton Division is required to purchase 6,400 tons of pulp each year from the Pulp Division at $98 per ton. What will be the effect on the profits of the company as a whole? Complete this question by entering your answers in the tabs below. References Req 1 Req 2 Req 3 Req 4A Req 40 Rods Req 6 Refer to requirement 4. If the Pulp Division refuses to meet the $87 price, should the Carton Division be required to purchase from the Pulp Division at a higher price for the good of the company as a whole? Should the Carton Division be required to purchase from the Pulp Division Mc Graw Hill Help Save & Ex Chec 2 4 points Seved eBook Pri 4-b. If the Pulp Division does not meet the $87 price, what will be the effect on the profits of the company as a whole? 5. Refer to requirement 4. If the Pulp Division refuses to meet the $87 price, should the Carton Division be required to purchase from the Pulp Division at a higher price for the good of the company as a whole? 6. Refer to requirement 4. Assume that due to inflexible management policies, the Carton Division is required to purchase 6,400 tons of pulp each year from the Pulp Division at $98 per ton. What will be the effect on the profits of the company as a whole? Complete this question by entering your answers in the tabs below. References Reg 1 Req 2 Req 3 Req 4A Req 48 Req 5 Rbq 6 Refer to requirement 4. Assume that due to inflexible management policies, the Carton Division is required to purchase 6,400 tons of pulp each year from the Pulp Division at $98 per ton. What will be the effect on the profits of the company as a whole? The company as a whole will have a(n) Req 5 in profit by Mc Graw Hill up Activity.docx MacBook Air Help Save & I Che