Southern, Thomson, dan Northern

Penawaran yang diberikan ketiga pihak memberikan dampak yang berbeda kepada perusahaan serta divisi.
1. Penawaran Divisi Thompson : $480

2. Penawaran West Paper Company : $430

3. Penawaran Eire Papers Ltd. :$432

Company

 1. Which bid should Northern Division accept that is in the best interest of Birch Paper Company? Thompson Division bid. Because it gives the lowest real cost for Birch Paper Company

2. Should Mr. Kenton accept this bid? Why or why not?

No, he shouldn’t. Mr. Kenton as manager of Northon Division is better to choose West Paper Company Bid because it will produce the lowest cost for Northon Division. The lowest cost will create the highest profit. The division will be judged independently on the basis of its profit.