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Verbena Company has two divisions, Pulp Division and Carton Division. Carton Division would like to buy 15,000 tons of pulp from Pulp Division. Currently, Pulp
Verbena Company has two divisions, Pulp Division and Carton Division. Carton Division would like to buy 15,000 tons of pulp from Pulp Division. Currently, Pulp Division is operating at full capacity and is making 50,000 tons of pulp per month. Costs of pulp are as follows: Variable costs $74 per ton Fixed costs $20 per ton The company uses a cost-based transfer pricing and its policy is to set a transfer price of pulp at a 14% markup to the pulp's full costs. Q.) Based on the company's policy, what is the price per ton that the Pulp Division should charge the Carton Division? (Do not round intermediate calculations. Round the final numbers to two decimal places.) A.)$ per ton Prey 2 of 251 Newt
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