Answered step by step
Verified Expert Solution
Question
1 Approved Answer
URGENT. Please answer correctly and I will leave an upvote. 5. Refer to requirement 4. Assume due to inflexble management policies, the Carton Division is
URGENT. Please answer correctly and I will leave an upvote.
5. Refer to requirement 4. Assume due to inflexble management policies, the Carton Division is required to purchase 5.500 tons of pulp each year from the Pulp Olvision at $80 per ton. What will be the effect on the compony's profits? Complete this question by entering your answers in the tabs below. What is the Pulp Division's lowest acceptable transfer price? What is the Carton Division's highest acceptable transfer price? What is the range of acceptable transfer prices (if-any) between the two divisions? Are the managers of the Carton and Pulp Divisions Iikely to agree to a transfer price for 5,500 tons of pulp next year? Note Round your answers to nearest whole dollar arnount. hat will be the effect on the profits of the Pulp Division, the Carton Division, and the company as a whole? (3) - (6) below, assume the Puip Division is currently selling only 30,000 tons of pulp each year to outside customers at the stated $80 price. What is the Pulp Division's lowest acceptable transfer price? What is the Carton Division's highest acceptable transfer price? What is the range of cceptable transfer prices of any) between the two divisions? Are the managers of the Carton and Pulp Oivisions likely to agree to a transfer price for 500 tons of pulp next year? A. Suppose the Carton Division's outside supplier drops its price to only $69 per ton. Should the Puip Division meet this price? 4.b. If the Pulp Division does not meet the $69 price, what will be the effect on the company's profits? 5. Pefer to requirement 4. If the Puip Division refuses to meet the $69 pilce, should the Carton Division be required to purchase from the Pulp Divislon at a higher price for the good of the company? 6. Refer to requirement 4. Assume due to inflexible management policies, the Carton Division is required to purchase 5.500 tons of puip each year from the Pulp Division at $80 per ton What wil be the effect on the company's profits? Complete this question by entering your answers in the tabs below. What is the Pulp Division's lowest acceptable transfer price? What is the Carton Division's highest acceptable transfer price? What is the range of acceptable transfer prices (if any) between the two divisions? Are the managers of the Carton and Pulp Divistons likely to agree to a transfer price for 5,500 tons of pulp next year? 5. Refer to requirement 4. Assume due to inflexble management policles, the Carton Division is required to purchase 5,500 tons of pulp each year from the Pulp Division at 580 per ton, What will be the effect on the company's profits? Complete this question by entering your answers in the tabs below. Refer to requirement 4, Assume due to inflexible management policies, the Carton Division is required to purchase 5,500 tons of pulp each year from the Pulp Division at $80 per ton. What will be the effect on the company's profits? 4 a):Suppose the Corton Division's outside supplier drops its price to only $69 per fon. Should the Pulp Division imeet this price? 4-0. If the Pulp Division does not meet the $69 price, what will be the effect on the comparys profles? 5. Refer to requirement 4. If the Pulp Division refuses to meet the $69 price, should the Carton Division be fequired to purchase from the Pulp Division ot a higher price for the good of the company? 6. Refer to requirement 4. Assume due to intlexible manapement policies, the Carton Division is required to purchase 5 , 500 tons of pulp each yest fron the Pulp Division at $8% per ton, What will be the effect on the company's profits? Complete this question by entering your answers in the tabs below. If the Pulp Diviston does not meet the $59 price, what will be the effect on the company's profics? Complete this question by entering your answers in the tabs below. If the Pulp Division meets the price the Carton Division is currently paying to its supplier and selis 5.500 tons of pulp to the Carton Division each year, what will be the effect on the profits of the Pulp Division, the Carton Division, and the company as a whole? Note: Do not round intermediate calculations. 4.b. If the Pulp Division does not meet the $69 price, what will be the effect on the company's profits? 5. Refef to requirement 4. If the Pulp Division refuses to meet the $69 price, should the Carton Division be required to purchase from the Pulp Division of a higher price for the good of the company? 6. Refer to requirement 4. Assume due to inflexible management policies, the Carton Division is required to purchase 5,500 tons of pulp each year from the Pulp Division at $80 per ton. What will be the effect on the company's profits? Complete this question by entering your answers in the tabs below. Refer to requirement 4. If the Puip Division refuses to meet the $69 price, should the Carton Division be required to purchase from the Pulp Division at a higher price for the good of the company? Should the Carton Division be required to purchase from the Pulp Division 4.a. Suppose the Carton Division's outside supplier drops its price to only $69 perton, Should the Fulp Division meet thls price? 4b. If the Pulp Division does not meet the $69 price, what wil be the effect on the company's profts? 5. Refer to tequirement 4. If the Pulp Division refuses to meet the $69 price; should the Carton Division be required to purchase from the Pulp Diviston at a higher price for the good of the company? 6. Refer to requirement 4. Assume due to infexible management policles, the Carton Division is required to purchase 5 , 500 tons of pulp each year from the Pulp Division at 580 per ton. What will be the effect on the company's profits? Complete this question by entering your answers in the tabs below. Suppose the Carton Division's outside supplier drops its price to only 569 per ton. Should the Puip Division meet this price? Hrubec Products, Incorporated, operotes a Pulp Division that manufoctures wood pulp for use in the production of vocious paper goods. Revenue and costs assoclated with a ton of pulp follow Hrubec Products has just acquired a small company that manufactures poper cartons. Hrubec plans to treat its newly acquired Carton Division as a profit center. The manager of the Carton Division is currently purchasing 5,500 tons of pulp per year from a supplier at a cost of $73 per ton. Hrubec's president is anxious for the Carton Division to begin purchasing its pulp from the Puip Division if the managers of the two divisions can neootiofe an acceptable transfer price. Required: For (1) and (2) below, ossume the Puip Division can sell all of its puip to outside customers for $80 per ton 1. What is the Pulp Ovislons iowest acceptable transfer price? What is the Carton Divisions highest acceptable transfer price? What is the range of bcceptable transfer prices of any) between the two divisions? Are the manegers of the Carton and Pulp Divisions Iikely to agree to a transfer price for 5,500 tons of pulp next year? 2. If the Pulp Olvision meets the price the Carton Division is currently paying to tis supplier and selis 5,500 tons of pulp to the Carton Division each yeat What will be the effect on the profits of the Pulp Division, the Corton Division, and the company as a Whole? For (3)-(6) below. assume the Pulp Division is currently selling only 30,000 tons of pulo eoch year to ounside customers at the stated $80 price. 3. What is the Pulp Division's lowest occeptable transfer price? What is the Carton Disions highest acceptable transfer price? What is the pange of 5.500 tons of pulp riext year? 4a. Suppose the Carton Devision's outside suppler drops its price to only $69 per ion Should the Puip Division meet this price? 4b. If the Putp Oivision does not meet the $69 price, what wir be the effect on the companys profits Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started