Problem 11A-4 Transfer Price with an Outside Market [LO11-5) Hrubec Products, Inc, operates a Pulp Division that manufactures wood pulp for use in the production of various paper goods. Hrubec Products, Inc., operates Revenue and costs associated with a ton of pulp follow $21 Selling price Expenses: $11 Variable Fixed (based on a capacity of 102,000 tons per year) Net operating income Hrubec Products has just acquired a small company that manufactures paper cartons. This company will be treated as a division of Hrubec with full profit responsibility. The newly formed Carton Division is currently purchasing 31,000 tons of pulp per year from, a supplier at a cost of $21 per ton, less a 10% purchase discount. Hrubec's president is anxious for the Carton Division to begin purchasing its pulp from the Pulp Division if an acceptable transfer price can be worked out