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HELP PLEASE...! Check my w Problem 11A-4 Transter Price with an outside Market LLUT1-5J Hrubec Products, Inc, operates a Pulp Divsion that manufactures wood pulp

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Check my w Problem 11A-4 Transter Price with an outside Market LLUT1-5J Hrubec Products, Inc, operates a Pulp Divsion 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 Expenses i $21 Variable Fixed (based on a capacity of $11 98,000 tons per Year) 6 17 $ 4 Net operating income Hrubec Products has just acquired a small company that manufactures paper cartons. This company Hrubec with full profit responsibility. The newly formed Carton Division is currently purchasing 33,000 tons of pulp per year from a supplierat acost of$21 per to purchasing its pulp from n, less a 10% purchase discount. Hrubec's president is anxious for the Carton Division to begin the Pulp Division if an acceptable transfer price can be worked out. Required: (1) and (2) below, assume the Pulp Division can sell all of its pulp to outside customers for $21 per ton. 1. What is the lowest acceptable transfer price from the perspective of the Pulp Division? What is the highest from the perspective of the Carton Division? What is the range of acceptable transfer prices (if any) be managers of the Carton and Pulp Divisions likely to voluntarily agree to a transfer price for 33,000 tons of pulp next year? Carton Division each year, what will be the effect on the profits of the Pulp Division, the Carton Division, and the compa acceptable transfer price n meets the price that the Carton Division is currently paying to its supplier and sels 33,000 tons of pulp to the ny as a whole? K Prev3 of 5 Next >

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