It Prelt Pro 6 Hudec Products Inc Contes a pulp Division the manufactures wood pulp for use in the production of various Docer goods Revenge and costs associated with a ton of pulp follow $21 $32 Selling price Egentest Varble Fixed based on capacity of 97, ton per year) Net operatie Incone 6 18 $3 op ht Hrubec Products has just acquired a small company that manufactures paper cartons Hrubec plans to treat its newly acquired Carton Division as a prontcenter. The manager of the Carton Division is currently purchasing 28.000 tons of pulp per year from a sucher at a cost of $18 90 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 ) and (2) below, assume the Pulp Division can sell all of its pulp to outside customers for $21 per ton What is the Pulp Division lowest acceptable transfer prices What is the Carton Division's highest acceptable transfer prices 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 price for 28,000 tons of pulp next year? 2 Ir the Pup Division meets the price that the Carton Division is currently paying to its supplier and sells 28.000 tons of pup 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 G (6) below.assume that the pulp Division is currently selling only 58.000 tons of pulp each year to outside customers at the stated $2 pnce 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 of any between the two divisions? Are the managers of the Cartak and Pulp Divisions likely to voluntarily agree to a transfer price for 28,000 tons of pulp next year? 4a Suppose the Carton Division's outside suppiler drops its price to only $17 per ton should the Pulp Division meet this price? 4-birthe Pulp Division does not meet the $17 price, what will be the effect on the profits of the company as a whole 5 Refer to (4) above of the Puip Division refuses to meet the $17 price, should the Carton Division be required to purchase from the DR 11 Pre-Suit Probiems Santa stated $21 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 of any between the two divisions? Are the managers of the Carton and Pulp Divisions likely to voluntarily agree to a transfer price for 28,000 tons of pulp next year? 4-a Suppose the Carton Division's outside supplier drops its price to only $17 per ton should the Puip Division meet this price 4-b If the Pulp Division does not meet the $17 price, what will be the effect on the profits of the company as a whole? 5 Refer to (4) above it the Pulp Division refuses to meet the $17 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 managernent policies, the Carton Division is required to purchase 2.000 tons of pulp each year from the Pulp Division at $ 21 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! Reg 2 Req3 Req - Reg 40 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 Mkely to voluntarily agree to a transfer price for 28,000 tons of pulp next year? (Round "Maximum transfer price" answer to I decimal place) Show less identity the range of acceptable transfer prices of any There is not a range of acceptable Fansfer prices There is a range of acceptable traiter pnces as shown below 2 Transfer price 2 Are the managers likely to voluntarily agree to a transfer price for 28.000 tons of pulp next year? Yes ONO
