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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

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The Paper business unit of Novak Supplies Inc. has had a busy year and has reported sales of 175,300 pounds of fully processed paper
for $98,830. It also incurred $56,200 worth of variable expenses and is currently operating at capacity. The Plate division of Novak
Supplies Inc. would like to purchase 7,810 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 12% markup would be needed to satisfy its own
internal needs. The Plate division said that it will not pay more than $5,400 total for this deal. What is the minimum acceptable
transfer price? (Round all calculations to two decimal places, e.g. $15.25.)
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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