Mathes Corporation manufactures paper products. The company operates a landfill, which it uses to dispose of nonhazardous trash. The trash is hauled from the two nearby manufacturing facilities in trucks that can carry up to six tons of trash in a load. The landfill operation requires certain preparation activities regardless of the amount of trash in a truck (i.e., for each load). The budget for the landfill for next year follows. Volume of trash 2,400 tons (400 loads) Preparation costs (varies by loads) $ 84,000 Other variable costs (varies by tons) 84,000 Fixed costs 182,000 Total budgeted costs $ 350,000 Mathes is considering making the landfill a profit center and charging the manufacturing plants for disposal of the trash. The landfill has sufficient capacity to operate for at least the next 20 years. Other landfills are available in the area (both private and municipal), and each plant would be free to decide which landfill to use. Required: a. Compute the optimal transfer price. b. Compute the total variable costs for a five-ton load of trash from one of the plants.

9 Mathes Corporation manufactures paper products. The company operates a landfill, which it uses to dispose of nonhazardous trash. The trash is hauled from the two nearby manufacturing facilities in trucks that can carry up to six tons of trash in a load. The landfill operation requires certain preparation activities regardless of the amount of trash in a truck (Le., for each load). The budget for the landfill for next year follows. 4 points 2,400 tons (400 loads) $ 84,000 eBook Volume of trash Preparation costs (varies by loads) Other variable costs (varies by tons) Fixed costo Total budgeted costs Print 84,000 182,000 $350,000 Mathes is considering making the landfill a profit center and charging the manufacturing plants for disposal of the trash. The landfill has sufficient capacity to operate for at least the next 20 years. Other landfills are available in the area (both private and municipal), and each plant would be free to decide which landfill to use. Required: a. Compute the optimal transfer price. b. Compute the total variable costs for a five-ton load of trash from one of the plants. Complete this question by entering your answers in the tabs below. Required Required B Compute the optimal transfer price. Optimal transfer per ton + per price load Required Required B > 9 Mathes Corporation manufactures paper products. The company operates a landfill, which it uses to dispose of nonhazardous trash. The trash is hauled from the two nearby manufacturing facilities in trucks that can carry up to six tons of trash in a load. The landfill operation requires certain preparation activities regardless of the amount of trash in a truck (Le., for each load). The budget for the landfill for next year follows. 4 points 2,400 tons (400 loads) $ 84,000 eBook Volume of trash Preparation costa (varies by loads) Other variable costs (varies by tons) Fixed costs Total budgeted costs Print 84,000 192,000 $350,000 Mathes is considering making the landfill a profit center and charging the manufacturing plants for disposal of the trash. The la has sufficient capacity operate for at least the next 20 years. Oth fills are available in the area (both private and municipal), and each plant would be free to decide which landfill to use. Required: a. Compute the optimal transfer price. b. Compute the total variable costs for a five-ton load of trash from one of the plants. Complete this question by entering your answers in the tabs below. Required Required B Compute the total variable costs for a 5-ton load of trash from one of the plants. (Do not round intermediate calculations.) Total variable cost per load