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Score: 0 of 4 pts 5 of 81 complet HW Score 6.67%, 2 of 30 pts E10-24A (similar to) Question Help 0 Gorman Motors manufactures specialty tractors. It has two divisions: a Tractor Division and a Tiro Division. The Tractor Division can use the tires produced by the Tire Division. The market price per tire in $70. The Tre Division has the following Click the icon to view the couts and additional information) Requirement 1. Assume that the The Division has excess capacity meaning that it can produceret for the Tractor Division without giving up any of its cunter resales to outsiders. Comman Motors has a negotated trofer price poly what is the lowest acceptable transfer price? What is the highest coeptable transfer price? (Assume the 51 includes only the variable portion of conversion costs) The lowest acceptabletter prices to Trevi Recurements More info - Drect material cost per tre 516 Conversion costs per tre 5 Asumo stes only the portion of conversion 1. Assume there Division has escapacity meaning that can produce tres for De Tractor Division without giving up any of its current tres to outside oman Motors as regrated transfer price policy what is the lowest acceptable transfer pros? What the center? 2. Orman Motors has a courser price policy of absorption cont plus 18% what would not 3. We The Duyang capacity mangane tre has the capacity to produce what would may be the rest osferice to use? What would be the transfer price in case Pred mesecturing overhead cost for the years expected to total $174.000 The The Division expects to manufacture 58.000 trs this year. The manufacturing overhead per tres 53 (5114.000 divided by 56,000) Done Done parts renang Check Arewer Gorman Motors manufactures specialty tractors. It has two divisions: a Tractor Division and a Tre Division. The Tractor Division can use the tres produced by the Tire Division. The market price per tire is $70. The Tire Division has the following costs per tire: (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 tire sales to outsiders. If Gorman Motors has a negotiated transfer price policy, what is the lowest acceptable transfer price? What is the highest acceptable transfer price? (Assume the $1 includes only the variable portion of conversion costs) The lowest acceptable transfer price is $ the Tire Division's Choose from any list or enter any number in the input fields and then click Check Answer parts remaining Clear A Check Answer i More Info urr ind Direct material cost per tire $16 Conversion costs per tire $1 (Assume the $1 includes only the variable portion of conversion costs.) Fixed manufacturing overhead cost for the year is expected to total $174,000. The Tire Division expects to manufacture 58,000 tires this year. The fixed manufacturing overhead per tire is $3 ($174,000 divided by 58,000 tires). ne Print Done Clear All 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 Gorman Motors has a negotiated transfer price policy, what is the lowest acceptable transfer price? What is the highest acceptable transfer price? 2. If Gorman Motors has alcost-plus transfer price policy of full absorption cost plus 15%, 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? Is curre: $1 incle Print Done CILLA
