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| Topic: |
Business
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| Number of pages / Number of words: |
10 / 2782 |
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Of the $30, about $25 would be out-of-pocket costs.
QUESTIONS
1. Which bid should Northern Division accept that is in the best interests of Birch Paper Company?
2. Should Mr. Kenton, the manager of Northern Division accept this bid? Why or why not?
3. Should the vice president of Birch Paper Company take any action?
4...
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Should Mr. Kenton, the manager of Northern Division accept this bid? Why or why not?
3. Should the vice president of Birch Paper Company take any action?
4. In the controversy described, how, if at all, is the transfer price system dysfunctional? Does this problem call for some change, or changes, in the transfer pricing policy of the overall firm? If so, what specific changes do you suggest?
Q1) Which bid should Northern Division accept that is the best interest of Birch Paper Company?
If we only based on the bidding price from the 3 companies, the cost to Northern Division if it accepts the bid from Thompson, Eire Papers and West Papers are $480, S$432 and $430 respectively...
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