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Crantuel Products is a cranberry cooperative that operates two divisions, a harvesting division and a processing division. Currently, all of harvesting's output is converted into cranberry juice by the processing division, and the juice is sold to large beverage companies that produce cranberry juice blends. The processing division has a yield of 500 gallons of juice per 1.000 pounds of cranberries. Cost and market price data for the two divisions are as follows: (Click to view the division data) Read the requirements Data Table $ 0.15 Harvesting Division Variable cost per pound of cranberries Fixed cost per pound of cranberries Selling price per pound of cranberries in outside market Processing Division Variable processing cost per gallon of juice $ 0.12 produced $ 0.24 Fixed cost per gallon of juice produced $ 0.69 Selling price per gallon of juice $ 0.45 $ 2.40 1. Compute Cranfuel's operating income from harvesting 420,000 pounds of cranberries during June 2017 and processing them into juice 2. Cranfuel rewards its division managers with a bonus equal to 2% of operating income. Compute the bonus earned by each division manager in June 2017 for each of the following transfer pricing methods: a. 175% of full cost b. Market price 3. Which transfer pricing method will each division manager profer? How might Cranfuel resolve any conflicts that may arise on the issue of transfer pricing? Requirement 1. Compute Cranfuers operating income from harvesting 420.000 pounds of cranberries during June 2017 and processing them into juice Revenues Costs Harvesting divison Variable costs Faxed costs Total harvesting division costs Processing division Variable costs Food costs Total processing division costs Total costs Operating income THE Enter y number in the edit fields and then click Check

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