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Current Attempt in Progress Splish's tire division typically sold all of its output to the assembly division for use in its tricycle products. The market
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Splish's tire division typically sold all of its output to the assembly division for use in its tricycle products. The market for tires was booming, though, allowing the tire division to sell its output externally for $ tire. The assembly division would prefer to use tires produced inhouse, but if it needs to purchase elsewhere, it can also purchase them for $ tire. The tires have a variable cost of $ tire to manufacture, or $ tire if all absorption costs are considered. Current capacity is tires, and the tricycle division needs tires.
How much gross margin will the tire division make by selling all of its output to the assembly division if a variable cost is used as the transfer price, b absorption cost is used as the transfer price, or c market price is used as the transfer price? Enter loss using either a negative sign preceding the number eg or parentheses eg Do not leave any answer field blank. Enter for amounts.
tableVariable cost aAbsorption cost bMarket price cGross margin,$
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