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o Question Help E10-24A (similar to) Goodsir Motors manufactures specialty tractors. It has two divisions: a Tractor Division and a Tire Division. The Tractor Division

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o Question Help E10-24A (similar to) Goodsir Motors manufactures specialty tractors. It has two divisions: a Tractor Division and a Tire Division. The Tractor Division can use the tres produced by the Tire Division. The market price per tire is $80. The Tire Division has the following costs per tre (Click the icon to view the costs and additional information.) Read the requirements Requirement 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 tre sales to outsiders. If Goods Motors has a negotiated transfer price policy, what is the lowest acceptable transfer price? What is the highest acceptable transfer price? (Assume the 54 includes only the variable portion of conversion costs) The lowest acceptable transfer price is the Tire Division's Requirements 1. Assume that the Tire Division has excess capacity, meaning that can produce tires for the Tractor Division without giving up any of its current tre sales to outsiders. If Goodsir Motors has a negotiated transfer price policy, what is the lowest acceptatiewe price? What is the highest acceptable transfer price? 2. If Gooder Motors has a cost-plus transfer price policy of full absorption cost plus 25% what would the transfer price be? 3. If the Tire Division is currently producing at capacity (meaning that is seling every single tire it has the capacity to produce), what would likely be the forest transfer price strategy to use? What would be the transfer price in this case? Choose from any list or enter any number in the input fields and then click Check Answer More Info Direct material cost per tire $27 Conversion costs per tire $4 (Assume the $4 includes only the variable portion of conversion costs.) Fixed manufacturing overhead cost for the year is expected to total $52,000. The Tire Division expects to manufacture 52,000 tires this year. The fixed manufacturing overhead per tire is $1 ($52,000 divided by 52,000 tires)

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