Graham Motors manufactures specialty tractors. It has two divisions: a Treactor 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: Direct material cost per tire: $15 Conversion costs per tire: $3 (Assume the $3 includes only the variable portion of conversion costs.) Fixed manufacturing overhead cost for the year is expected to total $116,000. The Tire Division expects to manufacture 58,000 tires this year. The fixed manufacturing overhead per tire is $2 ($116,000 divided by 58,000 tires). Part 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 Graham Motors has a negotiated transfer price policy, what is the lowest acceptable transfer price? What is the highest acceptable transfer price? The lowest acceptable transfer price is $_______, the Tire Division's ______________. The highest acceptable transfer price is $_______, the Tire Division's _____________. Word Options for Fill in the blank: Part 2: Word options for fill-in-the-blank: Part 3: If the Tire Division is currently producing at capacity (meaning that it is sellng every single tire it has the capacity to produce), what would likely be the most fair transfer price strategy to use? What would be the transfer price in this case? When a company is producing and selling at its capacity, the most fair transfer price strategy to use is the __________. In this case, the transfer price would be $_________. Word options for fill-in-the-blank: Please label which part of the question you are answering so that I may follow along. Also, please refrain from only partially answering the question. Thank you!

direct material cost per tire. market price per tire. total cost per tire. variable cost per tire