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LuLu Ltd has two divisions: Pulp Division and Paper Division. The Pulp Division produces paper pulp which the Paper Division purchases to produce toilet paper.

LuLu Ltd has two divisions: Pulp Division and Paper Division. The Pulp Division produces paper pulp which the Paper Division purchases to produce toilet paper. The following information relates to the production of paper pulp.

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Pulp Division Market price of paper pulp per metric ton $800.00 Variable costs per metric ton: -Processing cost $375.00 -Marketing cost $75.00 Fixed cost per metric ton $15.00

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