The Paper business unit of Home Supplies Inc. has had a busy year and has reported sales of 174,300 pounds of fully processed paper for $98,754. They also incurred $55,320 worth of variable expenses and are currently operating at capacity. The Plate division of Home Supplies Inc. would like to purchase 7,487 pounds of paper internally from the Paper business unit to continue making durable paper plates. The Paper division is considering taking on this order and has decided that a 12% markup would be needed to satisfy their own internal needs. The Plate division said that they won't pay more than $4,800 total for this deal. What is the minimum acceptable transfer price? Will this be a deal that the Paper division can proceed with? (Round all calculations to two decimal places.)

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The Answer of The Paper business unit of Home Supplies Inc. has had a busy year and has reported sales of 174,300 pounds of fully processed paper for $98,754. They also incurred $55,320 worth of variable expenses and are currently operating at capacity. The Plate division of Home Supplies Inc. would like to purchase 7,487 pounds of paper internally from the Paper business unit to continue making durable paper plates. The Paper division is considering taking on this order and has decided that a 12% markup would be needed to satisfy their own internal needs. The Plate division said that they won't pay more than $4,800 total for this deal. What is the minimum acceptable transfer price? Will this be a deal that the Paper division can proceed with? (Round all calculations to two decimal places.)

The Paper Business Unit of Home Supplies Inc