Gibson Motors manufactures specialty tractors. It has two divisions: a Tractor Division and a Tire Division. The Tractor Division can use the tires produced by the Tire Division. The market price per tire is $75. The Tire Division has the following costs per Tire:

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P SIe market price at it can produce tires for the Tractor Division without giving up any of its current tire sales to outsiders. If Gibson A ? (Assume the $3 includes only the variable portion of conversion costs) More Info -x of fu of conve Direct material cost per tire $25 Conversion costs per tire $3 (Assume the $3 includes only the vaniable portion of conversion costs) Fixed manufacturing overhead cost for the year is expected to total $110,000 The Tire Division expects to manufacture 55,000 tires this year. The fixed manufacturing overhead per tire is $2 y (mea($110,000 divided by 55,000 tires) strategy to t transfe Print Done d then continue to the next