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 pulp follow $23 Selling price Expenses Variable Fixed (based on a capacity of 99,000 tons per year) Net operating income $14 6 2e 53 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 32.000 tons of pulp per year from a supplier ata cost of $20.70 per ton Hrubec's president is andous for the Carton Division to begin purchasing its pulp from the Pulp Division of the managers of the two divisions can negotiate an acceptable transfer price Required: For (l) and (2) below, assume the Pulp Division can sell all of its pulp to outside customers for $23 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 32.000 tons of pulp next year? 2. If the Pulp Division meets the price that the Carton Division is currently paying to its supplier and sets 32.000 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 (31-6; below, assume that the Pulp Division is currently selling only 58.000 tons of pulp each year to outside customers at the stated $23 price 3. What is the Puip Division's lowest acceptable transfer once? 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 a transfer once for 32.000 tons of culo next vear? 1163) Saved 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 32,000 tons of pulp next year? 4-a Suppose the Carton Division's outside supplier drops its price to only $19 per ton. Should the Pulp Division meet this price? 4-6. If the Pulp Division does not meet the $19 price, what will be the effect on the profits of the company as a whole? 5. Refer to (4) above. If the Pulp Division refuses to meet the $19 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 (4) above. Assume that due to inflexible management policies, the Carton Division is required to purchase 32,000 tons of pulp each year from the Pulp Division at $23 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. Reg 1 Reg 2 Req3 Reg 4A Reg 40 Reg 5 Reg 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 32.000 tons of pulp next year? (Round "Maximum transfer price answer to 1 decimal place.) Show less Identify the range of acceptable transfer prices (if any) There is not a range of coeptable transfer prices There is a range of acceptable transfer prices as shown below Transfer price 2 Are the manager Sely to voluntarily agree to transfer price for 32.000 tons of us next year? No 2 Ir the Pulp Division meets the price that the Carton Division is currently paying to its supplier and sells 32.000 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 58,000 tons of pulp each year to outside customers at the stated $23 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 voluntarily agree to a transfer price for 32,000 tons of pulp next year? 4-a Suppose the Carton Division's outside supplier drops its price to only $19 per ton should the Pulp Division meet this price? 4-b. If the Pulp Division does not meet the $19 price, what will be the effect on the profits of the company as a whole? 5. Refer to (4) above. If the Pulp Division refuses to meet the $19 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 (4) above. Assume that due to inflexible management policies, the Carton Division is required to purchase 32,000 tons of pulp each year from the Pulp Division at $23 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. Req Req 2 Req3 Reg 4 Reg 40 Reas Reg 6 If the Pulp Division meets the price that the Carton Division is currently paying to its supplier and sells 22,000 tons of pulp to the Carton Divion each year what will be the effect on the profits of the Pulp Division, the Carton Division, and the company as w whole. (Do not round intermediate calculations.) Profits of the Pule Division will Profits of the Carton Division will o. Profits of the company as a whole will By by by P 1 of 3 Next Pulp Division at a higher price for the good of the company as a whole? 6. Refer to (4) above. Assume that due to inflexible management policies, the Carton Division is required to purchase 32.000 tons of pulp each year from the Pulp Division at $23 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. Req1 Reg 2 Reg 3 Req 4A Req 48 Reqs Reg 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 Nkely to voluntarily agree to a transfer price for 32,000 tons of pulp next year? (Round your answers to nearest whole dallar amount.) Show less Identify the lowest and highest acceptable transfer prices Lowest acceptable transfer price Highest acceptable transfer price Identify the range of acceptable transfer prices anys There is not a range of acceptable transfer prices There is a range of acceptable transfer prices as shown below Transfer price * Are the managers likely to voluntarily agree to a transfer price for 32.000 tons of pup next year? Yes No saved 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 voluntarily agree to a transfer price for 32,000 tons of pulp next year? 4-0. Suppose the Carton Division's outside supplier drops its price to only $19 per ton. Should the Pulp Division meet this price? 4-6. If the Pulp Division does not meet the $19 price, what will be the effect on the profits of the company as a whole? 5. Refer to (4) above. If the Pulp Division refuses to meet the $19 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 (4) above. Assume that due to inflexible management policies, the Carton Division is required to purchase 32,000 tons of pulp each year from the Pulp Division at $23 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. Reg 1 Reg 2 Roq3 Reg 4 Reg 48 Regs Req6 If the Pulp Division does not meet the $19 price, what will be the effect on the profits of the company as a whole? Profit of the company will by Saved 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 32,000 tons of pulp next year? 4-a. Suppose the Carton Division's outside supplier drops its price to only $19 per ton. Should the Pulp Division meet this price? 4-b. If the Pulp Division does not meet the $19 price, what will be the effect on the profits of the company as a whole? 5. Refer to (4) above. If the Pulp Division refuses to meet the $19 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 (4) above. Assume that due to inflexible management policies, the Carton Division is required to purchase 32,000 tons of pulp each year from the Pulp Division at $23 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. Reg 1 Reg 2 Reg 3 Req 4A Reg 40 Reg 5 Reg 6 Refer to (4). Assume that due to inflexible management policies, the Carton Division is required to purchase 32,000 tons of pulp each year from the Pulp Division at 523 per ton. What will be the effect on the profits of the company as a whole? The company as a whole will have ain) in profit by