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Should Mr. Kenton accept this bid? Why or why not?
Mr. Kenton should not accept the bid from West because it isn’t in the best interest of the company, but at the same time with the transfer policy that exists, it is really up to him what is in the best interests of his...... believe he should accept the bid from Thompson because not only will it result in the lowest cost, but also it will encourage buying from within the company.
3. Should the vice president of Birch Paper Company take any action?
The vice president of Birch should take action, but not against just this division. I think he needs to take action in order to remedy the overall problems associated with this transfer pricing policy...
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