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please answer 1,2,and 3 tire is $50. The Tire Division has the following costs per tire: (i) (Click the icon to view the costs and
please answer 1,2,and 3
tire is $50. The Tire Division has the following costs per tire: (i) (Click the icon to view the costs and additional information.) Read the requirements. conversion costs.) The lowest acceptable transfer price is , the Tire Division's 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 Germain Motors has a negotiated transfer price policy, what is the lowest acceptable transfer price? What is the highest acceptable transfer price? 2. If Germain 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 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? tire is $50. The Tire Division has the following costs per tire: (i) (Click the icon to view the costs and additional information.) Read the requirements. conversion costs.) The lowest acceptable transfer price is , the Tire Division's 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 Germain Motors has a negotiated transfer price policy, what is the lowest acceptable transfer price? What is the highest acceptable transfer price? 2. If Germain 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 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 caseStep by Step Solution
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