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... Birch division, assisted with the original design and was compensated for cost incurred for the design and development work.. Bids were sought internally from Thompson, and externally from West Paper Company (West), and Eire Papers, Ltd (Eire). A wide variance between the internal and external pricing was experienced. The bid breakdowns are as follows: 1. Northern directly purchases boxes from West at a price of $430 per 1000 boxes. 2. Northern purchases boxes from Eire for a price of $432 per 1000 boxes. Eire utilizes Birch's Southern Division for outside linerboard and Thompson for printing services. 3. Northern purchases boxes from Thompson for a price of $480 per 1000 boxes. Thompson utilizes Southern for linerboard and corrugated medium. Northern's Division Manager, Mr. Kenton, must evaluate each of the bids to determine which bid would be best to accept. An initial review of the bids would lead him to select the lowest of the ...