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Jonce Manny is the CEO of The Chilly Cone, a producer of premium ice cream. The Chilly Cone has two divisions, the supplying division and

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Jonce Manny is the CEO of The Chilly Cone, a producer of premium ice cream. The Chilly Cone has two divisions, the supplying division and the processing division. (Cick the icon to view the additional information regarding the divisions.) Read the reguirements. Requirement 1. What is the profit for the supplying division of supplying 10 gallons of milk to the processing division under Jonce's transfer pricing system? Do you think that the transfer pricing system incentivizes the managers of the supplying division to work hard, as Jonce intends? What is the profit for the supplying division of supplying 10 gallons of milk to the processing division under Jonce's transfer pricing system? Select th formula and enter the amounts to calculate the profit for the supplying division. (Complete all input fields. Enter a 0 for any zero balances.) Requirements 1. What is the profit for the supplying division of supplying 10 gallons of milk to the processing division under Jonce's transfer pricing system? Do you think that the transfer pricing system incentivizes the managers of the supplying division to work hard, as Jonce intends? 2. In the back of Jonce's mind is that one of the larger competitors may be interested in buying only one of the divisions, and not his entire company. Ho is patting himself on the back for choosing the transfer pricing system since, in his view, it makes the profitability of each of the two divisions look very good. Do you agree with Jonce? procestsing divisien. Road be ceasisneria What is the prott for the supplying division of supplying 10 galions of milk io the processing division undipr Jonoe's transfer pricing system? Sielect the More info The wuplying thision wupples mik, the main ingrediert, to the procassing dvision Jonce is an ambitous ectrepreneir, and he a hoping fo soon sel The Chily Cons, which is a private pompary, to sne of the lapger competisn. The supplying division buys mik from local farmers for $3 per 10 gotlons, and incus 52 of variable cests per 10 gations virsported to the processing division (the could buy erif of the same high puatey for 58 per 90 galtens on the ouside market Jonce is tying to 'whip his cortopary into staoe' by implementing a transfer pricing system that he vieses as providing very stvong incentues for the lwo divisions to work hard the supptying divition wil pet raimbursed for its incremental costs of sueplying the mik to the processing disionc the protessirg division is charged the price that it would have to pay on the open market

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