Complete this question by entering your answers in the tabs below. Suppose the Carton Division's outside supplier drops its price to only $91 per ton. Should the Pulp Division meet this price? 6. Refer to requirement 4. Assume due to inflexible management policies, the Carton Division is required to purchase 6,600 puip each year from the Pulp Division at $102 per ton. What will be the effect on the company's profits? Complete this question by entering your answers in the tabs below. If the Pulp Division does not meet the $91 price, what will be the effect on the company's profits? Complete this question by entering your answers in the tabs below. Refer to requirement 4. If the Pulp Division refuses to meet the $91 price, should the Carton Division be required to purchase from the Pulp Division at a higher price for the good of the company? Should the Carton Division be required to purchase from the Pulp Division 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: Hrubec 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 6,600 tons of pulp per year from a supplier at a cost of $95 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) beiow, assume the Pulp Division can sell all of its pulp to outside customers for $102 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 (f any) between the two divisions? Are the managers of the Carton and Pulp Divisions likely to agree to a transfer price for 6,600 tons of pulp next year? 2. If the Pulp Division meets the price the Carton Division is currently paying to its supplier and seis 6,600 tons of pulp to the Carton Division each year, what will be the effect on the profts of the Pulp Oivision, the Carton Division, and the company as a whole? For (3) - (6) below, assume the Putp Oivisionis currently selling only 30,000 tons of pulp each year to outside customers at the stated S102 price. 3. What is the Pulp Division's lowest acceptable transfer price? What is the Canton Division's highest acceptable transfer price? What is the range of acceptable transfer prices (if any) befween the two divisions? Are the managers of the Carton and Pulp Divisions likely to agree to a transfer price for 6,600 tons of pulp next year? 4. Suppose the Carton Division's outside supplier drops its price to only $91 per ton. Should the Pulp Division meet this price? 4. b. If the Pulp Division does not meet the \$Yl price, what will be the effect on the company's profits? 5. Refer to requirement 4 if the Puip Division refuses to meet the $91 price, should the Carton Division be required to purchase from the Pulp Division at a higher price for the good of the company? 6. Refer to requirement 4. Assume due to inflexible management policies, the Carton Division is required to purchase 6,600 tons of pulp each year from the Pulp Division at \$102 per ton. What will be the effect on the company's profits? Complete this question by entering your answers in the tabs below. 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 agree to 3 transer price for 6,600 tons of puip next year? fote: Round your answers to nearest whole doltar amount. Complete this question by entering your answers in the tabs below. If the Pulp Division meets the price the Carton Division is currently paying to its supplier and sells 6,600 tons of puip 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. Complete this question by entering your answers in the tabs below. Refer to requirement 4. Assume due to inflexible management policies, the Carton Division is required to purchase 6,600 tons of pulp each year from the Pulp Division at $102 per ton. What will be the effect on the company $ profits? Complete this question by entering your answers in the tabs below. What is the Pulp Division's towest acceptable transfer price? What is the Carton Division's highest acceptable transfer price? What is the range of acceptable transfer prices (if amy) between the two divisions? Are the managers of the Carton and Pulp Divisions likely to agree to a transfer prifo for 5,500 tons of pulp next year
