Refer to Plank Inc. Assume the Following

question 77

Essay

Refer to Plank Inc. Assume the following:
∙ Paint Division can make 1,000,000 L per year, and expects to produce 1,000,000 L.
∙ Construction Division currently buys 200,000 L of paint from an outside supplier for $5.20 per litre (the same price that the Paint Division receives).
Required:
A. The maximum transfer price per litre of paint is $__________________.
B. The minimum transfer price per litre of paint is $__________________.
C. Does it matter whether or not the two divisions transfer?

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Definitions:

Supports Viewpoints

The act of providing evidence or arguments to back up specific opinions or perspectives.

Picketing

A labor activity in which individuals place themselves outside an employer’s place of business for the purpose of informing passersby of the facts of a labor dispute.

Labor Law

governs the rights and obligations between workers and employers, dealing with issues such as workplace safety, wages, and labor unions.

Federal Law

Laws created by the federal government as opposed to state or local laws, governing nationwide issues.