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Assuming that the transfer price policy of Birch Paper is (and has been) to transfer at market price (adjusted for any internal savings). Answer the following questions: 1. Discuss why has this situation arisen at Birch? Is it a problem with the control system and/or transfer pricing policy, is it a problem with one or more managers, or is there some other cause? 2. How, if at all, should the situation be dealt with in the short-run? Should the vicepresident get involved? Discuss. 3. Discuss whether the control system and/or transfer pricing policy of Birch Paper need(s) to be changed. If so, what specific changes would you recommend? If neither needs to be changed, discuss why not.