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Direct material cost per tire \\( \\$ 31 \\) Conversion costs per tire \\( \\$ 5 \\) (Assume the \\( \\$ 5 \\) includes only the variable portion of conversion costs ) Fixed manufacturing overhead cost for the year is expected to total \\( \\$ 180,000 \\). The Tire Division expects to manufacture 45,000 tires this year. The fixed manufacturing overhead per tire is \\( \\$ 4 \\) ( \\( \\$ 180,000 \\) divided by 45,000 tires). Requirements 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 Griffin Motors has a negotiated transfer price policy what is the lowest acceptable transfer price? What is the highest acceptable transfer price? 2. If Griffin Motors has a cost-plus transfer price policy of full absorption cost plus \10, what would the transfer price be? 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? Gritin Motors manufactures speciaty tractors. It has two divisions a Tractor Division and a Tire Division. The Tractor Division can use the fires produced by the Tire Division The market price per tre is 550 . The Tro Division has the following costs per tire: (Click the icon to view the costs and additional information ) Read the Requirement 1. Assume that the Tiro Dwision has excess capacity neaning that a can produce tires for the Tractor Oivision watiout giving up any of its current tire aales to outsidors If Griflin Motors has a negotated transler price polcy, what is the lowest acceptable rangler price? What is the highost acceptable transfec price? (Assume the 35 includes onty the variable portion of converion cosss) The lowest accoplable ranter price is the Tie Ciraions