1.
The transfer price per roll of recycled paper and would the production manager will choose to purchase 2,000 pounds next month from EC.
Given information:
The rate of the recycling division is $0.075.
Numbers of the recyclable paper used is 100 pounds.
Variable cost is $6.35.
Fixed cost is $2.15.
The recycling paper is transferred to the manufacturing division at the cost of 110%.
2.
Whether the external purchase is in the best interest of CM and the cause for this goal incongruence.
Given information:
The rate of the recycling division is $0.075.
Numbers of the recyclable paper used is 100 pounds.
Variable cost is $6.35.
Fixed cost is $2.15.
3.
The reason of the sudden price cut, comment on the validity of the $17 per roll market price and the ethics of the manufacturing manager and whether the change in transfer price to $17 matter to SC.

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Chapter 22 Solutions
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