Question
Greely Motors manufactures specialty tracions. It has two divisions a Tractor Division and a Tre Dunion. The Tractor Division can use the tires produced
Greely Motors manufactures specialty tracions. It has two divisions a Tractor Division and a Tre Dunion. The Tractor Division can use the tires produced by the Tre Division. The market price per tre is $85. The Tre Dvision h (Click the icon to view the costs and additional information) Read the requirements Requirement 1. Assume that the Tine Division has excess capacity, meaning that & can produce tires for the Tractor Division without giving up any of its current tire sales to outsiders. If Greely Motors has a negotiated transier acceptable transfer price? What is the highest acceptable transfer price? (Assume the $4 includes only the vanable portion of conversion costs) The lowest acceptable transfer price is $ 31. the Tire Division's variable cost per The highest acceptable transfer price is the Tre Division's More info Direct material cost per see $27 Conversion costs per tire $4 (Assume the $4 includes only the variable portion of conversion costs)
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