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The Paper business unit of Novak Supplies Inc. has had a busy year and has reported sales of 1 7 5 , 3 0 0
The Paper business unit of Novak Supplies Inc. has had a busy year and has reported sales of pounds of fully processed paper
for $ It also incurred $ worth of variable expenses and is currently operating at capacity. The Plate division of Novak
Supplies Inc. would like to purchase pounds of paper internally from the Paper business unit to continue making durable paper
plates. The Paper division is considering accepting this order and has decided that a markup would be needed to satisfy its own
internal needs. The Plate division said that it will not pay more than $ total for this deal. What is the minimum acceptable
transfer price? Round all calculations to two decimal places, eg $
Will this be a deal with which the Paper division should proceed?
this is a deal that the Paper division would accept since the overall price it would charge of $ is less than the that the plate dvision is willing to pay
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