President Birch Paper Company Although the current financial implications for Birch Paper Company are not substantial‚ as the contract in question is less than 5% of the volume in any division‚ it is imperative that Birch Company establishes and addresses its transfer price policies and procedures with each division. This will ensure that the divisions are not putting their objectives ahead of the Company’s and as a result‚ not maximizing the overall revenues and profits of Birch Paper Company. This report
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Purpose: The purpose of this memo is to explore the issues facing Hammermill Paper Company as the company seeks to communicate a new planning process to its five‚ relatively autonomous‚ operating divisions. Summary of Changes In an effort to improve the flow of planning information between Hammermill Paper’s corporate division and the operational divisions‚ a new planning procedure has been designed. This new procedure is to be a flexible‚ two-way process. The hope for the new planning and communication
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Starrett companies is certainty not immune to risks. In this paper we will be looking at the risk poised to the Starrett company in the venture of opening a distribution warehouse in Toronto Canada. 1. Internal. What are the company’s most significant internal risks and opportunities related to the project? Some internal risks to Starrett in regards to moving to Canada would be; Increasing costs: Most companies‚ and especially Starrett is not immune to the rising costs of doing business. In
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Case 2B (Mendel Paper Company) Tara McKnight BUS630: Managerial Accounting Prof Moustafa Ahmed July 14‚ 2014 Mendel Paper Company Introduction The paper will talk about the Mendel Paper Company’s concern in regards to their four basic paper product lines. It will show the cost and price data for the next fiscal quarter‚ plus showing the contribution margins per unit and the revisions. The paper will include the break-even point for sales
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Group Case Analysis Project: “Birch Paper Company” ------------------------------------------------- Question1 Mr. Kenton should accept Bid #2 – West Paper Company at $430 as it was the lowest bid and thus will give Northern Division the highest return. Under the current company policy each division is judged independently based on profit and return‚ thus Mr. Kenton would only be interested in his own division’s success and not the overall success of the company. -------------------------------------------------
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Snow White Paper Company "If I were to price these boxes any lower than $480 a gross‚" said James Brunner‚ manager of Snow White Paper Company’s Thompson Division‚ "I’d be countermanding my order of last month for our sales force to stop shaving their bids and to bid full cost quotations. I’ve been trying for weeks to improve the quality of our business. If I turn around now and accept this job at $430 or anything less than $480‚ I’ll be tearing down this program I’ve been working so hard to
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30% of out of pocket costs 120(30%*400) Total 288 West Papers Costs Total 430 Eire Papers Costs Outside linear(Southern div) 54(60%*90) Printing(Thompson div) 25 Own Supplies 312(432-5-36) Total 391 As shown in the calculations above‚ Northern should accept the bid from Thompson division as it has the lowest cost if all transfer prices within the company were calculated at costs. Incurring the lowest costs would also enable Birch Paper Company to earn the highest profits possible. 2. As alternatives
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In the case of Worldwide Paper Company we performed calculations to decide whether they should accept a new project or not. We calculated their net income and their cash flows for this project (See Table 1.6 and 1.5). We computed WPC’s weighted average cost of capital as 9.87%. We then used the cash flows to calculate the company’s NPV. We first calculated the NPV by using the 15% discount rate; by using that number we calculated a negative NPV of $2‚162‚760. We determined that the discount rate
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A Roman Catholic monk‚ Gregor Mendel (1822-1884)‚ was raised on a farm and enjoyed gardening and mathematics. In 1856 he started to experiment with pea plants to explain why certain traits that appeared in one generation did not always reappear in the next generation. During eight years Mendel mixed over 30‚000 plants by controlling their pollination and wanted to know why the results came to be. Mendel noticed that although there were some traits that were common amongst all the pea plants there
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Gregor Mendel Gregor Mendel was an Austrian monk that came up with the idea of dominant and recessive traits. Gregor Mendel was born in 1822 in Heinzendorf bei Odrau‚ Austria. When Gregor Mendel grew up‚ he realized that if he joined a monastery and became a monk‚ he could get a good education for less money. Mendel began his experiments around 1856‚ and continued them until around 1863. Gregor Mendel started his study of heredity with mice‚ but his bishop (teacher) didn’t want him studying animal
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