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 Selling price Expenses: $20 Variable Fixed (based on a capacity of 105,000 tons per year) 6 17 Net operating income $3 Hrubec Products has just acquired a small company that manufactures paper cartons. This company wll be treated as a division of Hrubec with full profit responsiblity. The newly formed Carton Division is curently purchasing 27,000 tons of pulp per year from a supplier at a cost of S20 per ton, less a 10% purchase is anxious for the Carton Division to begin purchasing its pulp from the Pulp Division if an acceptable transfer price can be worked out Required: For (1) and (2) below, assume that the Pulp Division can sell ll of its pulp to outside customers for $20 per ton. 1-a. What is the minimum transfer price for Carton Division? ariable cost per unit otal contribution margin on lost sales No of units transferred Transfer price 2 S 11