Please give me all answers. I just need answers, not explanation. If you can\'t
ID: 2570291 • Letter: P
Question
Please give me all answers. I just need answers, not explanation.
If you can't give me all answers, just ignore please. Some of you just leave 3 or 4 answers.. that's why I leave comment.
Hrubec Products, Inc., operates a Pulp Division that manufactures wood pulp for use in the production of various paper goods. Revenue and costs associated with a ton of pulp follow: Selling price Expenses: $20 $10 Variable Fixed (based on a capacity of 96,000 tons per year) 6 16 Net operating income Hrubec Products has just acquired a small company that manufactures paper cartons. This company will be treated as a division of Hrubec with full profit responsibility. The newly formed Carton Division is currently purchasing 29,000 tons of pulp per year froma supplier at a cost of$.20 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. Req 3 Req 4A Req 4B Req 6 If the Pulp Division meets the price that the Carton Division is currently paying to its supplier and sells 29,000 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? |by by > | by Profits of the Pulp Division will decrease | remain unchanged decrease 160,000 |$ 0 160,000 Profits of the Carton Division will Profits of the company as a whole b. Req 2 Req 4A Req 4B Req 5 If the Pulp Division does not meet the $15 price, what will be the effect on the profits of the company as a whole? company decrease b 150,000 Req 1 Req 3 Req 4A Req 4B Req 6 Refer to (4) above. Assume that due to inflexible management policies, the Carton Division is required to purchase 29,000 tons of pulp each year from the Pulp Division at $20 per ton. What will be the effect on the profits of the company as a whole? in The company as a whole will have a(n) eaprofit increase 150,000Explanation / Answer
A.Profits of the division will decrease by $58,000.
C.Profits of the company as a whole will decrease by $ 58,000.
Profit of the company will decrease by $145,000.
C.The company as a whole will have an increase in profit by $116,000.