19_BirchPaperNegotiationsAgenda2

19_BirchPaperNegotiationsAgenda2 - ACCY 302 (Chen) 19 Class...

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ACCY 302 (Chen) Class 19 Fall 2009 BIRCH PAPER COMPANY AGENDA FOR TRANSFER PRICING NEGOTIATIONS 1) As you can see from the seat assignments for today’s class, you’ve been divided into groups and will represent the different divisions of Birch Paper --- Northern, Southern, or Thompson. 2) The negotiations should be based on the facts in the case, including the costs identified and the fact that Northern may purchase from outside. You will be negotiating the prices at which the goods will be transferred from one division to another. 3) For the first three minutes, get into your divisions and do two things: a) choose a spokesperson b) determine your strategy: i) if you’re Southern, decide what range of transfer price your division will be willing to sell to Thompson for and what your first proposal will be iii) if you’re Thompson, decide what range of transfer prices your division will be willing to accept from Southern and will be willing to sell to Northern, what your first proposal might be ii) if you’re Northern, decide what range of transfer prices you’re willing to accept from Thompson
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19_BirchPaperNegotiationsAgenda2 - ACCY 302 (Chen) 19 Class...

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