est acceptable transfer price is , the Tire Division's Requirements More info 1. Assume that the Tire Division has excess capacity, meaning that it can produce tires for the Tractor Division without giving up any of its current tire sales to outsiders. If Goodsir Motors has a negotiated transfer price policy, what is the lowest acceptable transfer price? What is the highest acceptable transfer price? Direct material cost per tire $29 Conversion costs per tire $4 (Assume the $4 includes only the variable portion of conversion costs.) 2. If Goodsir Motors has a cost-plus transfer price policy of full absorption cost plus 20%, what would the transfer price be? Fixed manufacturing overhead cost for the year is expected to total $80,000. The Tire Division expects to manufacture 40,000 tires this year. The fixed manufacturing overhead per tire is $2 ( $80,000 divided by 40,000 tires). 3. If the Tire Division is currently producing at capacity (meaning that it is selling every single tire it has the capacity to produce), what would likely be the fairest transfer price strategy to use? What would be the transfer price in this case