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Del Norte Paper Company Diagrammatic Description of Product, Revenue, Cost and Cash Flows African 340 to 550

400 550 (325) (460) Company

Twenty Outside Firms

DNP Deutschlan d 385 (203) [190]

DNP Italia

235 [220]

235 [360] [220]

DNP Mill (USA)

Spot Market

Supplies 30% ? ? ? DNP Woodlands Division

to 40% ?

Other Spot Suppliers

(Supplies 30% to 40%) Relevant Cost Data As Seen from Corporate Viewpoint

Alternative Choice Where Costs Incurred Analyzed DNP Italia Spot ($) European subsidiary: Conversion Purchase price 90 235 90 75 235 75 KEA ($) DNP Deutschland Spot ($) KEA ($)

DNPs American Mill Direct cost Freight 203 48 203 48

DNP Woodlands Contribution on sales X X

325

341-X

310

326-X

Contribution Data As Seen from Corporate Viewpoint

Alternative Choice Where Costs Incurred Analyzed DNP Italia Spot ($) European subsidiary: Sales revenue Direct costs 400 (325) 400 (475) 400 (310) 400 (460) KEA ($) DNP Deutschland Spot ($) KEA ($)

DNPs American Mill Contribution on sale 134 134

DNP Woodlands Contribution on sales X X

75

59+X

90

74+X

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